Demand Systems from Cross Section Data: An Experiment for Indonesia

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1987-06-01
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Teklu, Tesfaye
Johnson, Stanley
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Center for Agricultural and Rural Development

The Center for Agricultural and Rural Development (CARD) conducts innovative public policy and economic research on agricultural, environmental, and food issues. CARD uniquely combines academic excellence with engagement and anticipatory thinking to inform and benefit society.

CARD researchers develop and apply economic theory, quantitative methods, and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers; the research community; agricultural, food, and environmental groups; individual decision-makers; and international audiences.

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A linear version of the Almost Ideal Demand System and the Multinomial Linear Logit Model are used to estimate Indonesia's food demand system in order to support policy analysis for Indonesia's five-year plan. The resulting estimated elasticities vary significantly across economic levels. These elasticities are evaluated and compared with other studies in Indonesian and other selected Asian countries. Policy reforms targeted to changing food prices will cause predictable results.

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Thu Jan 01 00:00:00 UTC 1987
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