• editor.aipublications@gmail.com
  • Track Your Paper
  • Contact Us
  • ISSN: 2456-8635

International Journal Of Horticulture, Agriculture And Food Science(IJHAF)

Food Demand for Carbohydrate Sources: Linear Approximation-Almost Ideal Demand System/LA-AIDS Approach

Ratya Anindita , Faiqoh Amalina , Ana Arifatus Sa’diyah , Nikmatul Khoiriyah , Abdul Wahib Muhaimin


International Journal of Horticulture, Agriculture and Food science(IJHAF), Vol-6,Issue-2, March - April 2022, Pages 11-19, 10.22161/ijhaf.6.2.3

Download | Downloads : 2 | Total View : 86

Article Info: Received: 20 Mar 2022; Received in revised form: 08 Apr 2022; Accepted: 13 Apr 2022; Available online:19 Apr 2022

Share

The most suitable system demand model for food analysis is the LA-AIDS model. This study aims to analyze the estimated demand for carbohydrate sources of food, analyze the demand for carbohydrates from rural households, and analyze the food demand for carbohydrates from urban households. This study uses data from the 2016 National Socio-Economic Survey (Susenas). Data were analyzed using the Linear Approximation-Almost Ideal Demand System (LA-AIDS) model. The results of the analysis show that the demand for carbohydrate-sourced food differs between rural and urban households which are influenced by price, income, and number of household members. When viewed from the elasticity of demand, rice and corn are commodities that are inelastic to changes in household expenditure. Wheat is a superior commodity in both rural and urban areas. Meanwhile, sweet potato and cassava are elastic in terms of expenditure for rural households. However, each household allocates higher consumption expenditures for rice compared to other commodities. In line with the analysis of expenditure elasticity, rice has the most inelastic price elasticity compared to other commodities. In addition, the effect of changes in rice consumption on changes in prices of other commodities is lower than the effect of changes in rice prices on the consumption of other commodities. This condition explains that among other commodities, the demand for rice to meet the needs of carbohydrates in the body is the highest. So that efforts are needed from the government to maintain the stability of rice commodity prices in the market.

expenditure elasticity, price elasticity, rural households, urban households.

[1] Akinbode, S. O. (2015). A linear approximation almost ideal demand system of food among households in South-West Nigeria. International Journal of Social Economics, 42(6), 530–542. https://doi.org/10.1108/IJSE-08-2014-0165
[2] Amanto, B. S., Chairul Basrun Umanailo, M., Wulandari, R. S., Taufik, T., & Susiati, S. (2019). Local consumption diversification. International Journal of Scientific and Technology Research, 8(8), 1865–1869.
[3] Andreyeva, T., Long, M. W., & Brownell, K. D. (2010). The impact of food prices on consumption: A systematic review of research on the price elasticity of demand for food. American Journal of Public Health, 100(2), 216–222. https://doi.org/10.2105/AJPH.2008.151415
[4] Barten, A. P., & Turnovsky, S. J. (1966). Some aspects of the aggregation problem for composite demand equations. International Economic Review, 7(3), 231-259.
[5] Bashir, A., & Yuliana, S. (2018). Identifying factors influencing rice production and consumption in Indonesia. Jurnal Ekonomi Pembangunan, 19(2), 172–185.
[6] Bett, H. K., Musyoka, M. P., Peters, K. J., & Bokelmann, W. (2012). Demand for Meat in the Rural and Urban Areas of Kenya: A Focus on the Indigenous Chicken. Economics Research International, 2012, 1–10. https://doi.org/10.1155/2012/401472
[7] Christensen, L. R., Jorgenson, D. W., & Lau, L. J. (1975). Transcendental logarithmic utility functions. The American Economic Review, 65(3), 367-383.
[8] Deaton, A. (1986). Demand analysis. Handbook of econometrics, 3, 1767-1839.
[9] Deaton, A., & Muellbauer, J. (1980). An almost ideal demand system. The American economic review, 70(3), 312-326.
[10] Delavar, A., Yavari, G., & Yazdani, S. (2020). Testing of Weak Separability and Estimating of Meat Demand System in Iran ( Application of Rotterdam Demand System ). 228, 215–228.
[11] Delport, M., Louw, M., Davids, T., Vermeulen, H., & Meyer, F. (2017). Evaluating the demand for meat in South Africa: an econometric estimation of short term demand elasticities. Agrekon, 56(1), 13-27.
[12] Elnovita, E., Jamal, A., Seftarita, C., & Saputra, J. (2019). Analysis of demand for food commodities and its impact on the poverty. Opcion, 35(89), 455–474.
[13] Erhabor, P. O. I., & Ojogho, O. (2011). Demand analysis for rice in Nigeria. Journal of food technology, 9(2), 66-74.
[14] Färe, R., Grosskopf, S., Hayes, K. J., & Margaritis, D. (2008). Estimating demand with distance functions: Parameterization in the primal and dual. Journal of Econometrics, 147(2), 266–274. https://doi.org/10.1016/j.jeconom.2008.09.033
[15] Hafizah, D., Budiman Hakim, D., & Nurmalina, R. (2020). Analysing Food Consumption in Indonesia. International Journal of Progressive Sciences and Technologies (IJPSAT), 20(2), 340–347. http://ijpsat.ijsht-journals.org
[16] Hermanto, Rachmat, D. H. A. M., Ilham, N., Supriyati, Kariyasa, I. K., Setiyanto, A., & Rangga Ditya Yofa Edy Yusuf, S. (2015). Outlook Komoditas Pangan Strategis Tahun 2015-2019. In Pusat Sosial Ekonomi Dan Kebijakan Pertanian, Badan Penelitian dan Pertanian Indonesia. http://pse.litbang.pertanian.go.id/ind/pdffiles/anjak_2015_18.pdf
[17] Kassali, R., Kareem, R. O., Oluwasola, O., & Ohaegbulam, O. M. (2010). Analysis of Demand for Rice in Ile Ife, Osun State, Nigeria. Journal of Sustainable Development in Africa, 12(2), 63-78.
[18] Liao, H., & Chern, W. S. (2007). A dynamic analysis of food demand patterns in urban China (No. 381-2016-22052).
[19] Lusk, J. L. (2017). Consumer research with big data: Applications from the food demand survey (foods). American Journal of Agricultural Economics, 99(2), 303–320. https://doi.org/10.1093/ajae/aaw110
[20] M.J.A. Van den Tillaart. (2019). The Price Elasticity of Demand for Fresh Dairy Products. 1–46.
[21] Maula, L. R., Anindita, R., & Syafrial, N. (2019). Estimasi Permintaan Daging Sapi di Provinsi Jawa Timur dengan Model Sistem Pengeluaran Linier. Jurnal Agro Ekonomi, 37(1), 47. https://doi.org/10.21082/jae.v37n1.2019.47-60
[22] McLaren, K. R., Rossitter, P. D., & Powell, A. A. (2000). Using the cost function to generate Marshallian demand systems. Empirical Economics, 25(2), 209–227. https://doi.org/10.1007/s001819900012
[23] Muyanga, M., T.S. Jayne, G. A.-K., & Ariga, J. (2006). Staple Food Consumption Patterns In Urban Kenya: Trends And Policy Implications By. Policy, 20498(00200).
[24] Nugroho, S., & Suparyono, S. W. (2015). Pola Permintaan Daging Tingkat Rumah Tangga di Indonesia: Analisa Data Mikro 2013. Jurnal Ekonomi Dan Pembangunan Indonesia, 16(1), 47–58. https://doi.org/10.21002/jepi.v16i1.668
[25] Oyinbo, O., Omolehin, R. A., & Abdulsalam, Z. (2013). Analysis of the demand for rice in Kaduna State, Nigeria. Agris on-line Papers in Economics and Informatics, 5(665-2016-44953), 45-52.
[26] Pangaribowo, E. H., & Tsegai, D. W. (2011). Food demand analysis of Indonesian households with particular attention to the poorest. ZEF-Discussion Papers on Development Policy, (151).
[27] Purwaningsih, Y., Hartono, S., Masyhuri, M., & Mulyo, J. H. (2014). Analisis Permintaan Pangan Rumah Tangga Menurut Tingkat Ketahanan Pangan di Propinsi Jawa Tengah (Analisis Data Susenas 2008). Eko-Regional: Jurnal Pembangunan Ekonomi Wilayah, 5(1).
[28] Rahmawati, F. (2009). Pengembangan Industri Kreatif Melalui Pemanfaatan Pangan Lokal Singkong. Seminar Nasional “Peran Pendidikan Kejuruan Dalam Pengembangan Industri Kreatif” Jurusan PTBB FT UNY, November, 1–6.
[29] Sa’diyah, A. A., Anindita, R., Hanani, N., & Muhaimin, A. W. (2019). Strategic Patterns of Households’ Food Consumption in Indonesia. Russian Journal of Agricultural and Socio-Economic Sciences, 87(3), 79–83. https://doi.org/10.18551/rjoas.2019-03.10
[30] Siami-Namini, S. (2017). Analysis of US Household Final Consumption Expenditure Using LA/AIDS Approach. International Journal of Current Advanced …, 6(9), 6315–6320. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3476878
[31] Sombilla, M. A., Lantican, F. A., & Quilloy, K. P. (2013). Estimating the demand elasticities of rice in the Philippines. Monograph.
[32] Stone, R. (1954). Linear Expenditure Systems and Demand Analysis: An Application to the Pattern of British Demand. The Economic Journal, 64(255), 511–527.
[33] Sulgham, A. K. (2006). Econometric essays on specification and estimation of demand systems.
[34] Sunaryati, R. (2016). Analisis Permintaan Beras di Provinsi Kalimantan Tengah. Daun: Jurnal Ilmiah Pertanian dan Kehutanan, 3(2), 99-107.
[35] Theil, H. (1965). The analysis of disturbances in regression analysis. Journal of the American Statistical Association, 60(312), 1067-1079.
[36] Zheng, Z., & Henneberry, S. R. (2010). The impact of changes in income distribution on current and future food demand in urban China. Journal of Agricultural and Resource Economics, 51-71.
[37] Zheng, Z., & Henneberry, S. R. (2010). An analysis of food grain consumption in urban Jiangsu province of China. Journal of Agricultural and Applied Economics, 42(2), 337-355.