Indonesia Conference Directory

Corresponding Author
Ana Arifatus Sadiyah

Institutions
1Departement of Agribusiness, University of Tribhuwana Tunggadewi, Jl. Telaga Warna Tlogomas, Malang 65144, Indonesia /Agriculture Sciences of Doctoral Program, Brawijaya University
2Departement of Socio Economics, University of Brawijaya, Jl. Veteran, Malang 65145, Indonesia
ratyaa[at]ub.ac.id, nuhfil.fp[at]ub.ac.id, abd.muhaimin[at]ub.ac.id
aCorresponding Author : ana.arifatus[at]unitri.ac.id

Abstract
Indonesian has experienced high strategic food prices in recent years. This paper examines the welfare impact of rising strategic food groups- prices on Indonesian poor households using Linear Approxia Almost Ideal Demand System (LA-AIDS) approach. The elasticity coefficients derived from LA-AIDS are used to estimate Compensated Variation (CV) and Equivalent Variation (EV). The study uses SUSENAS (Indonesian National Socioeconomic Survey) raw data. Based on our estimates, the strategic food groups of rice, corn and shallot are necessary goods, as their budget elasticity is positive and below one at the same time. Beef, chili, and sugar are luxury goods, with income elasticity above one. We find that, overall, higher strategic food price raised the average poor household-s welfare. Higher food prices made most households worse off.

Keywords
Compensating variation, Equivalent variation, Welfare, Elasticities

Topic
BIOECONOMY AND BIOBUSINESS

Link: https://ifory.id/abstract/K3DBZPWCf8pJ