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Livestock Products Food Expenditure Pattern in Indonesia: Estimation Analysis from Repeated Cross-Section Data

Mujtahidah Anggriani Ummul Muzayyanah, Sudi Nurtini, Rini Widiati, Suci P. Syahlani, and Tri A. Kusumastuti
Faculty of Animal Science, Universitas Gadjah Mada, Yogyakarta, Indonesia
Abstract—The aim of this study is to analyze the livestock products consumption patterns based on a household data and explore the dynamic effects as well as the impact of demographic variables on the demand model specification. This paper used a dynamic LA/AIDS demand model to estimate various food demand parameters for households using household expenditure survey data (SUSENAS) 2012 and 2013. The results show that all important livestock products food has positive expenditure elasticities. Meat, egg and milk are necessities. The estimated point elasticities are consistent with previous studies and a priori expectations. Egg is found to be price inelastic in long run. While meat and milk are price elastic in the long run. The expenditure elasticities for meat and milk are declining, but these for egg is increasing. As per capita income rises and population increases, the demand for these items will continue to increase. Habit effects imply consumption of livestock products having an income effect on current consumption decision Therefore, Indonesia must continue to increase its food production by a greater rate in the future in order to avoid food shortages.
 
Index Terms—livestock products, dynamic LA/AIDS, Indonesia

Cite: Mujtahidah Anggriani Ummul Muzayyanah, Sudi Nurtini, Rini Widiati, Suci P. Syahlani, and Tri A. Kusumastuti, "Livestock Products Food Expenditure Pattern in Indonesia: Estimation Analysis from Repeated Cross-Section Data," Journal of Advanced Agricultural Technologies, Vol. 4, No. 2, pp. 175-179, June 2017. Doi: 10.18178/joaat.4.2.175-179
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