Journal of Agribusiness in Developing and Emerging Economies Nutrient elasticities of food consumption: the case of Indonesia Faharuddin Faharuddin, Andy Mulyana, M. Yamin, Yunita Yunita, Article information: To cite this document: Faharuddin Faharuddin, Andy Mulyana, M. Yamin, Yunita Yunita, (2017) "Nutrient elasticities of food consumption: the case of Indonesia", Journal of Agribusiness in Developing and Emerging Economies, Vol. 7 Issue: 3, pp.198-217, https://doi.org/10.1108/JADEE-02-2016-0008 Permanent link to this document: T) https://doi.org/10.1108/JADEE-02-2016-0008 P 18 ( Downloaded on: 10 January 2018, At: 17:51 (PT) 0 y 2 References: this document contains references to 38 other documents. uar To copy this document: [email protected] n Ja The fulltext of this document has been downloaded 177 times since 2017* 0 1 1 Users who downloaded this article also downloaded: 5 7: 1 At (2017),"Do demographics predict shoppers’ choice of retail outlet for roots and tubers in Trinidad n and Tobago?", Journal of Agribusiness in Developing and Emerging Economies, Vol. 7 Iss 3 ddi pp. 231-241 <a href="https://doi.org/10.1108/JADEE-05-2016-0035">https://doi.org/10.1108/ u ar JADEE-05-2016-0035</a> h a n F (2017),"Does coffee production reduce poverty? Evidence from Uganda", Journal of Agribusiness di in Developing and Emerging Economies, Vol. 7 Iss 3 pp. 260-274 <a href="https://doi.org/10.1108/ d aru JADEE-01-2016-0004">https://doi.org/10.1108/JADEE-01-2016-0004</a> h a F or Access to this document was granted through an Emerald subscription provided by ct o Token:Eprints:KPPPKTQ4DRTJXXAF24GR: D y b For Authors d e d oa If you would like to write for this, or any other Emerald publication, then please use our Emerald wnl for Authors service information about how to choose which publication to write for and submission Do guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services. Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. *Related content and download information correct at time of download. ThecurrentissueandfulltextarchiveofthisjournalisavailableonEmeraldInsightat: www.emeraldinsight.com/2044-0839.htm JADEE Nutrient elasticities of 7,3 food consumption: the case of Indonesia 198 Faharuddin Faharuddin Central Bureau of Statistics of the Republic of Indonesia, Jakarta, Indonesia, and Received17February2016 Andy Mulyana, M. Yamin and Yunita Yunita Revised26April2016 Accepted2May2016 Faculty of Agriculture, Sriwijaya University, Palembang, Indonesia T) Abstract P 8 ( Purpose – The purpose of this paper is to assess nutrients elasticities of calories, proteins, fats, and 1 0 carbohydratesinIndonesia. y 2 Design/methodology/approach – Quadratic Almost Ideal Demand System is used on Indonesian ar socioeconomichouseholdsurveydata. u an Findings–Expenditureelasticitiesofnutrientsinoverallmodelrangefrom0.707(forcarbohydrates)to 0 J 1.085(forfats),butexpenditureelasticitiesinruralareasarehigherthanthoseinurbanarea.Mostofprice 1 1 elasticities of nutrients have very small absolute value (not elastic) and all values are lower than the 5 expenditureelasticities.However,thepriceoffivegroupsoffoodcommodities,namely,rice,oilandgrease, 17: fishes,meat,andotherfoodsgivesignificantinfluenceonnutrientsconsumption. At Researchlimitations/implications–Thisresearchonlyincludesfourmicronutrients,namely,calorie, n protein,fat,andcarbohydrate. ddi Originality/value – This research is one of very limited literatures about nutrient elasticity of food aru consumptioninIndonesia. ah KeywordsIndonesia,QUAIDS,Nutrientelasticity F n PapertypeResearchpaper di d u ar h 1. Introduction a or F Quality food consumption is one of the Indonesian Government’s main concerns in the ct developmentoffoodsecurity.Dietsshouldbebalancedintermsofnutritionalcomposition. o D This would enable the population to perform daily activities and the country to achieve y b appropriate health standards. Based on the recommendations of the 2012 National d e WorkshoponFoodandNutritionX,theRegulationoftheMinisterofHealthNo.75of2013, d oa theIndonesianGovernmenthasestablishedthattheminimumenergyrequirementis2,150 nl w kilocalories per capita per day, while the minimum protein requirement is 57 grams per o D capita per day. Nutrition plays an important role in human health because of its links to manysocioeconomicandhealthvariables,suchasmalnutrition,theprevalenceofdisease, educationalattainment,andemploymentstatus. In2012,theaveragepercapitacaloricconsumptioninIndonesiawas1,848.17kilocalories perdaybelowtheminimumenergyrequirement,whiletheaverageconsumptionofprotein per capita per day was 5.2 grams below the standard of protein adequacy (BPS, 2013). Further, the consumption of energy and protein in Indonesia declined over the past few decades.Thelownutritionalintakeisalsoreflectedinthehighratesofmalnutritionamong Indonesian children under age 5, which in 2013 reached 18.3 percent (Balitbangkes, 2013). Indonesia also faces the problem of the low diversification of food consumption, which is indicatedbythelowscoreforthedesirabledietarypattern(PolaPanganHarapan)andthe JournalofAgribusinessin DevelopingandEmerging highdependenceonstaplefoods,especiallyrice. Economies Vol.7No.3,2017 During the period 2003-2013, the annual food-inflation rate in Indonesia, in general, pp.198-217 ©EmeraldPublishingLimited exceeded 10 percent per year and was almost always higher than the total inflation rate. 2044-0839 Thismeansthat,everyyear,foodpricesexperiencedconsiderableincreases,andthatthese DOI10.1108/JADEE-02-2016-0008 priceincreasesexceededthoseofnon-foodnecessities.Further,whenfoodinflationislow, Nutrient total inflation is also low. Annual food inflation has shown large fluctuations. During the elasticities periodunderreview,thelowestfood-inflationratewas3.88percentfor2009andthehighest of food ratewas16.35percentfor2008. consumption Increasing food prices have led to increases in the percentage of household budgets allocated to food consumption. This means that if household incomes remain relatively unchanged, then rising food prices will cause a decline in household purchasing power. 199 Households oftenrespondtothissituation byreducing theirdemand forfoodstuffsor by replacingwhattheynormallyconsumewithcheaperfoodstuffs.Thus,anincreaseinfood pricescaninfluencehousehold’sfood-consumptionpatternsintermsofbothquantityand quality.Incomeisanotherfactorthatinfluencesthequalityofhouseholdfoodconsumption. The higher the income, the higher the household’s ability to provide food whose consumptionmeetsanappropriatestandardofhealth. T) Theimpactofincreasingfoodpriceandchangingincomelevelsonthequalityoffood P 8 ( consumptioncanbestudiedthroughthenutrientselasticityofhouseholdfoodconsumption. 1 0 This information is useful to policymakers in terms of designing policies aimed at food 2 y provision, and food-price stabilization, by guaranteeing food affordability, especially for ar nu low-income households. The main objective of this study is to assess the nutrients a 0 J elasticities of calories, proteins, carbohydrates, and fats in Indonesia, using household 1 1 surveydataSurveiSosialEkonomiNasional(SUSENAS)conductedin2013.Furthermore, 7:5 thisstudyisexpectedtoprovideinformationtoassistpolicymakersindeterminingpolicies At 1 aimedatimprovingthequalityofthefoodconsumedsoastoaddressthestruggleagainst n malnutritioninIndonesia. di d u ar 2. Literaturereview h Fa Inrecentyears,researchershavebeenfocusingonnutritiondemand.Moststudieshavebeen n di on evaluating either the income or the price elasticity of nutrient consumption so as to d u determine the relationship between nutrients consumption (especially calorie consumption) ar h andchangesinincomeorfoodprices(Pitt,1983;BehrmanandDeolalikar,1987;Sahn,1988; a or F Bouis,1994;Huang,1996;SubramanianandDeaton,1996;Grimard,1996;DawsonandTiffin, ct 1998;Rae,1999;GibsonandRozelle,2002;Skoufias,2003;Moeis,2003;AbdulaiandAubert, o D 2004; Fousekis and Lazaridis, 2005; Akinleye and Rahji, 2007; Babatunde et al., 2010; y b Irz, 2010; Aromolaran, 2010; Ecker and Qaim, 2011; Skoufias et al., 2011; Zheng and d e Henneberry,2012;Widarjono,2012;Anriquezetal.,2013). d oa Conclusionsdifferregardingtheeffectofchangesinincomeonnutrientsconsumption. nl w Thisisbecause thesestudies had awide range ofestimates for incomeelasticities. Salois o D et al. (2012) reviewed studies of income-nutrients elasticity and found that the impact of incomeonnutrientsconsumptiondiffersacrosstheincomedistributionandbetweenpoor andrichcountries.SanteramoandShabnam(2015)concludedthatthedifferentresultsare also due to the quality of the data used in these studies. In a cross-country study on the impactofpricesonnutrientsconsumption,Anriquezetal.(2013)foundthatapriceincrease reducesthemeanconsumptionandworsensthedistributionofcaloriesacrossapopulation, therebycausingthenutritionalstatusofthepopulationtodeteriorate. There are relatively few studies on nutrients elasticities of food consumption in Indonesia.UsingSUSENAS1990data,Rae(1999)studiedtheelasticityoffoodconsumption withrespect tototalhouseholdexpenditures inurban Javaand foundit tobevery small, especially with respect to the elasticities of calories and carbohydrates consumption. Skoufias(2003)examinedtheincomeelasticityofthepriceimpactoncalorieconsumption, using SUSENAS 1996 and 1999 data. Skoufias et al. (2011) also evaluated the income elasticityofothermicronutrientsbeforeandaftertheeconomiccrisisof1997.Theresults showthattheincomeelasticityoftheconsumptionofcaloriesandothermicronutrientsdid JADEE notsignificantlychangeimmediatelybefore(1996)andafter(1999)thecrises.Moeis(2003) 7,3 also used nutrients elasticities (calories, proteins, carbohydrates, and fats) to study the impact of the economic crisis of 1997, using SUSENAS data (1996, 1999). In contrast to Skoufias (2003) and Skoufias et al. (2011), Moeis (2003) concluded that the consumption of nutrients is responsive to income or expenditures; he also found that the elasticity of expendituresincreasedduringthecrisis,althoughtheelasticityofnutrientsrelativetothe 200 changeinthepriceofricewasquitesmall(between−0.20and−0.22)anddeclinedafterthe economiccrisis.Widarjono(2012)alsoexaminedtheelasticityofcalories,proteins,fats,and carbohydrates consumed in Indonesia, by using SUSNAS 2011. He found that the expenditure elasticities ranged from 0.59 to 0.75 and were lower than the results of Moeis’s(2003)study.Widarjono(2012)alsofoundthatthepriceofeggsandmilkhadthe mostinfluenceontheconsumptionofcalories,proteins,andcarbohydrates. T) P 3. Methods 8 ( ThedatausedinthisstudywereobtainedfromIndonesia’sNationalSocioeconomicSurvey 1 20 for 2013 (SUSENAS). SUSENAS is a household survey that collects data on household ary consumption, which include over 200 food commodities consumed in Indonesian nu households. Since 2011, SUSENAS has conducted its survey on a quarterly basis, using a 0 J thesamesamplesizeeachquarterbutdifferentsamplehouseholds.Inthisstudy,weused 1 1 onlytheSUSENASdatafromthesurveyconductedinMarch2013. 5 7: Thisstudyconsistsoftwostagesoftheestimationprocess.Thefirststageestimatesthe 1 At price and income elasticities, using Quadratic Almost Ideal Demand System (QUAIDS) of n Banks et al. (1997). In the second stage, we calculate the nutrients elasticity of calories, ddi proteins,fats,andcarbohydrates.TheQUAIDSmodelsusedinthisstudywereformulated, u ar followingRay(1983)andPoi(2012),byincorporatingsocio-demographicvariablesasfollows: h n Fa X (cid:2) (cid:3) (cid:4) x (cid:5) di w ¼p þ g lnp þ b þg0D ln arud i i j ij j i i m0ðDÞaðpÞ h a (cid:6) (cid:4) (cid:5)(cid:7) Doctor F þ bðpÞclðpi; DÞ ln m0ðDxÞaðpÞ 2þ ui y b wherew isthebudgetshareoftheithfoodgroup,p isthepriceofthejthfoodgroup,xistotal ed househoild expenditures on food, D is the vectorjof the demographic variables, p is the d Q P Downloa Pvecðnit¼o1rÞPofnjt(cid:2)hiegipjlrnicpe,imln0pðDj Þis¼t1hþe rp0rDic;ecðipnd;eDx,Þb¼ðpÞj¼pjnQ0jnD,plnbiiaðispÞth¼eaC0oþbb-Dnðio¼u1gÞalaislnppriiþce aggregator,and∝,g ,β,λ,η,ρareunknownparametei¼rs1. i ij i i i (cid:2)PWe imposPe restrictions toPthe above(cid:3)demand modePl, namely, by adding up n a ¼1; n g ¼0; and n b ¼0 , homogeneity ð n g ¼0Þ, and symmetry i¼1 i i¼1 ij i¼1 i j¼1 ij (γ ¼γ ), in order to be consistent with consumer-demand theory. To simplify the estimation ij ji ofdemand,weuseonly14foodgroups,namely,rice,non-ricestaples,tubers,fish,meat,eggs, milk, vegetables, pulses, fruits, oil and grease, beverage ingredients, spices, and other foods. Theabove QUAIDS model was estimated using a seemingly unrelated regression technique. Becauseofthenon-linearityintheparametersandthecross-equationrestrictionsofthedemand system,weusedtheiterativefeasiblegeneralizednon-linearleastsquaresestimationmethodto obtain more efficient estimates of the parameters. Adding up this restriction causes the singularityofthecovariancematrixoftheerrortermu,sothatintheestimationprocess,the i lastequationinthedemandsystemmustbedropped(Poi,2012). Householddemographicvariablesareincluded,inthemodel,tocontrolforvariationsinthe structureofpreferencesbetweenhouseholdsthatareduetodifferencesintheirdemographic characteristics.Someresearchersalsoincorporatehouseholddemographicvariablesintheir Nutrient demandmodels,suchasthoseconductedbyPollakandWales(1981),Rain(1983),Deatonand elasticities Paxson(1998),andDentonetal.(1999).ResearchthatexaminesfooddemandinIndonesiaalso of food incorporatesdemographicvariables(Moeis,2003;Widarjono,2012).Inthisstudy,weusesix consumption demographic variables: household size, the number of children under five years of age, the urban/rural classification, household head education level (completed senior high school or not),householdheademploymentsector(agricultureornon-agriculture),andincomegroups 201 (40percentlowestincome,40percentmediumincome,and20percenthighestincome). ThepurchasepricesofthefoodcommoditieswerenotexplicitlyrecordedintheSUSENAS questionnaire,sotheserawdatawerenotavailable.Asaresult,thisresearchusedtheunit- value approach as an approximation of these prices; this method gives the ratio of food- commodityexpenditures(inrupiahs)tothequantityoffoodcommoditiesconsumed.But,as notedbyDeaton(1987),CoxandWohlgenant(1986),andHoang(2009),justificationmustbe T) appliedtotheaboveunit-valueapproximationsoastohandlevariationsinfoodpricesorfood P 8 ( quality.FollowingHoang(2009),weusedthefollowingjustificationequations: 1 0 2 y v ¼v þjxþhDþe andp ¼v þeb ar i i i i i i i u an wherev ¼(1)/(n)∑[(v )(x /x)]andv ¼(x )/(q )aretheunitvaluesoftheithfoodsubgroup At 17:51 10 J asccuoonnmbdsgmutrhomoeudeipidkt;ytDoh,ftithfshoeoethiidktehthcvksoefumcobtoimokgdrroocodioukfimpttyh,im,eanrodeddesimpttyheo;ceginktrtiiovaitpesalhtylhii;kfceoxvoniakdu,irkmiexaxibb,pelaeernsno;ddfφidtxuiafrnafeerdsre,eθrneeatxsrfppeoeeouncdntdikcvitoneumlorywem;snqoiokpdnaiitsriteathshmeeienkqteituthrhasn;ffεootiootidyds din aresidual;vi andviþebi denotethemeansoftheunitvailuesatthecommunitylevel(censius d u block);andp istheadjustedpriceofthecommoditytobeusedintheQUAIDSmodel. ar i h The elasticity estimate of the QUAIDS model was calculated using the following a n F equations(Poi,2012): di d (1) Income/expenditureelasticity: u ar Fah e ¼ miþ1; ctor ix wi o D (2) Uncompensatedpriceelasticity: y b d m oade eij ¼ wiij(cid:2)dij; nl w o (3) Compensatedpriceelasticity: D en ¼e þe w; ij ij ix j (cid:2) (cid:3) ilwi¼ðhbeijþreg:0iDamÞnif(cid:3)dln½@@lxwδniix(cid:4)jg¼¼2.0biþfogri0Di≠þj)b,ðpÞclaðipn;DdÞ:ln½mmij0ð(cid:3)DxÞa@ð@plnwÞ(cid:4)ip,jδ¼ijigsijK(cid:2)rmoinðeacikþePrkδg(jδkijln¼p1kfÞo(cid:2)r bðpÞcðp;DÞ aðpÞ The nutrients elasticities consist of the elasticities of calories, proteins, fats, and carbohydrates, and are calculated following Pitt (1983), Sahn (1988), Huang (1996), Ecker andQaim(2011),andWidarjono(2012)asfollows: (1) Income/expenditureelasticity: PP c q e E ¼ Pi Pk ikN ik ix; N c q i k ikN ik JADEE (2) Priceelasticity: 7,3 PP c q e e ¼ Pi Pk ikN ik ij; Nj c q i k ikN ik where E is the nutrients elasticity with respect to income/expenditure; e is the N Nj 202 nutrientselasticitywithrespecttothepriceoffoodgroupj;CikNisthecoefficientof the nutrient content (N) of food item k of food group i, q specifies the average ik quantityconsumedoffooditemkinfoodgroupi;e denotestheincomeelasticityof ix fooddemand;ande istheuncompensatedpriceelasticityoffooddemand. ij 4. Resultsanddiscussion T) Averagenutrientsconsumption P 8 ( The average calorie consumption per capita in Indonesia is 1,963.22 kilocalories per day 1 0 belowtheIndonesianminimumdailyenergyrequirement.Themainsourcesofcaloriesare 2 y rice,followedbyoilandgrease,beverageingredients,andotherfoods.Caloricconsumption ar u from non-rice staples and tubers is still relatively small. In rural areas, the caloric n a J consumptionfromrice,non-ricestaples,oilandgrease,andbeverageingredientsishigher 0 1 thaninurbanareas,whereasthecaloricconsumptionderivedfromotherfoods(including 1 7:5 preparedfoods)ishigherinurbanthaninruralareas. At 1 In overall, the average consumption of proteins is 56.52 grams per capita per day, n which is also below the minimum protein requirement. Proteins consumption also di mainly comes from rice, followed by fish, and other foods (including prepared foods) d aru in both urban and rural areas. The proportion of protein consumption from fish as a ah source of animal protein appears to be small, as well as is the consumption of protein F n derived from eggs. The consumption of vegetable proteins from legumes is also still di d quite small. u ar The consumption of fats in Indonesia averages 42.23 grams per capita per day, and h Fa carbohydrates consumption averages 311.47 grams per capita per day. The highest or proportion of fats consumed come from oil and grease, followed by fats from other food ct o groups, while the consumption of fat from meat appears to be very low. Rice is the main D y source of carbohydrate intake, followed by other food and beverage ingredients. b d The proportion of carbohydrates that are derived from non-rice staples and tubers also e ad seemstobeverylow. o nl Theconsumptionofcalories,proteins,andcarbohydratesislowerinurbanareasthanin w o rural ones, but average fat consumption is only slightly higher in urban than in rural D areas(TableI). Fooddemandelasticity Table II presents the parameter estimates of the QUAIDS model. Of the coefficients, 147 of 252 (58.33 percent) are significant at the 5 percent level, while for the price coefficients 43.75 percent are significant at the 5 percent level. From the table, we can seethat10ofthe14coefficientsofthequadratictermaresignificantatthe5percentlevel. Thisleadsustoconcludethatthemodelthatusesaquadratictermismoreprecisethan thelinearmodelis. TableIIIshowstheexpenditureelasticitiesandown-priceelasticitiesforallgroupsoffood commodities.Inlinewitheconomictheory,allincome/expenditureelasticitiesarepositiveand allown-priceelasticitiesarenegative.Milkhasthehighestexpenditureelasticity,followedby meat,fruits,andotherfoods,andricehasthelowestexpenditureelasticity.Thismeansthat changesinincomemostlyaffecttheconsumptionofmilk,meat,fruits,andotherfoodsbutdo m)Rural(13) 206.237.8417.930.550.010.102.447.812.4710.671.5328.431.7233.06320.79 elaNsutitcriiteinest gra of food ( sn 957253473501044 consumption drateUrba(12) 171.24.25.00.40.00.14.46.03.110.70.825.11.858.0291.3 y h o 203 b CarOverall(11) 191.206.3012.400.490.030.113.307.062.7510.711.2227.001.7543.80308.12 Rural(10) 3.860.300.151.832.651.570.650.712.000.3218.120.210.649.0242.04 T) P y 2018 ( s(gram)Urban(9) 3.200.090.051.494.232.101.570.612.550.3515.950.200.7215.3148.41 ar at u F n 51 10 Ja Overall(8) 3.580.210.111.693.331.801.040.672.240.3317.180.210.6711.7244.78 7: 1 din At Rural(7) 22.530.940.569.991.821.760.633.073.730.510.431.150.576.6954.37 d aru m) h a ddin Fa eins(grUrban(6) 18.720.490.228.963.242.361.492.205.180.530.241.110.6314.0159.38 ctor Faharu ProtOverall(5) 20.890.740.419.552.432.021.002.704.350.510.351.130.609.8456.52 o D y b 420783601647783 oaded Rural(4) 963.236.275.461.231.622.217.844.040.444.5263.1111.814.0246.81,972.8 nl ow al) D ories(kcUrban(3) 800.0118.8921.5053.3051.9929.6937.3934.8053.2444.91250.6698.4615.16440.501,950.50 al C Overall(2) 893.0228.7752.2157.8440.4225.4426.2640.0445.9344.71257.77106.1014.54330.171,963.22 ations ul c nts cal Foodgroups(1) RiceNon-ricestaplesTubersFishesMeatEggsMilkVegetablesPulsesFruitsOilandgreaseBeverageingredieSpicesOtherfoodsTotal’AuthorsSource: cAacpvoietnrasa,ugpfmeoeropnTdtudaitoagbrnyirle,oepnbuetIypsr. JADEE ** ********** ** ** *** ** *********** ** ******* 7,3 w14(15) 0.518*−0.031* −0.057*0.001*0.002*0.024*0.012*−0.002*0.014*0.004*−0.004*0.017*−0.001*−0.0010.000*−0.008*−0.011* −0.005*0.008*−0.001*0.001*0.011*0.002*−0.009*95*** 1 ** * ******** * *****0. ** * ******** *******¼ w13(14) 0.017*0.005* 0.006*0.0000.0000.000*0.0000.003*0.002*0.001*0.001*0.002*0.001*0.001*0.003* 0.000* 0.000*0.000*0.000*0.000*0.000*0.000*0.001*ρ7 − − −− 204 * * ** * * * ***** * * * **** * * * ******* w12(13) 0.025*0.001 0.001*0.0000.000*−0.002*0.001*−0.001*−0.002*0.0000.003*0.0000.000−0.001* 0.001* 0.001*0.000*0.001*0.001*−0.001*0.000*0.002*49*** 0 ** ***** ** * ** ***0. ** ***** ** * ******¼ w11(12) 0.0020.003* 0.006*0.003*0.0000.001*0.001*0.001*0.001*0.003*0.0010.002*0.006* 0.001* 0.0000.000*0.001*0.000*0.001*0.001*0.002*ρ6 − −− −− − − PT) ** ******************** ** **** ** **** Faharuddin At 17:51 10 January 2018 ( Dependentvariables w7w8w9w10(8)(9)(10)(11) −0.230***0.0100.030***0.180*−−0.049***0.0050.017***0.004 −−0.022***0.006***0.008***0.021*−0.000**0.003***0.001***0.004*−−0.0000.003***0.001***0.002*−0.004***0.006***0.002***0.003*−0.001*0.0010.0000.002*−0.003***0.001***0.002***0.002*−−0.018***0.002***0.002***0.003*−−0.015***0.004***0.004*−0.012***0.003*−0.012* −−0.003***0.002***0.001***0.002* 0.001***0.001***0.0000.001*−0.002***0.001***0.0000.001*−0.008***0.001***0.000***0.000−−0.002***0.001***0.000***0.001*−0.001***0.002***0.000***0.000−−0.001***0.001***0.001***0.001*−−0.002***0.005***0.003***0.003*ρ−ρ−¼¼0.027*40.055***5 ntat10,5,and1percent,respectively octor Faharuddin w5w6(6)(7) 150***0.015***−011***0.008*** 005***0.001*−001**0.001***−0000.001***−0000.001*−006***0.004***0.002*** −001**0.001*** 001***0.000***000**0.000***000**0.000***001***0.000***0000.000−002***0.001***003***0.000***ρ¼30.001 nt.*,**,***Significa Downloaded by D w3w4(4)(5) 0.030***0.156***0.0.006***0.0040. −−0.003***0.021***0.0.0000.000*0.0.0000.001***0.−0.006***0.−0. −0.001***0.0000. 0.0000.001***0.−0.000***0.001***0.0.000***0.001***0.−0.0000.000**0.−0.000***0.002***0.−−0.0000.004***0.−−0.000**0.004***0.ρ−¼20.048*** ofthesymmetryconstrai w2(3) 019***004*** −002***006*** 001*** 000***000***000000000***000***000****** dbecause 0.0. 0.−0. 0. 0.0.0.0.0.0.0.0.186 state w1(2) −0.320***−0.012** 0.110*** 0.008*** −0.001**−0.008***0.005***0.001**−0.004***0.003***0.008***ρ−¼1 mptycellsarenot’orscalculations TPofaartbhalmeeQeItUIe.rAeIsDtiSmmatoedsel Independentvariables(1) α-i(constants)βp-i(lnx/)-ijgpln1pln2pln3pln4pln5pln6pln7pln8pln9pln10pln11pln12pln13pln14λp2)-i((lnx/)η-iD1D2D3D4D5D6D7ρ TheeNotes:AuthSource: Nutrient citiesRural(10) −0.479−1.502−1.007−0.955−1.166−0.906−0.605−1.014−1.327−1.203−1.102−0.969−0.873−0.992 elasotficfiotioeds sti consumption a el e c own-priUrban(9) −0.371−1.892−1.016−0.971−1.120−0.906−0.710−1.060−1.346−1.173−1.143−0.989−0.858−0.772 205 d e at s n e p T) ComOverall(8) −0.434−1.661−1.011−0.964−1.139−0.906−0.675−1.038−1.337−1.186−1.122−0.979−0.866−0.860 P 8 ( 1 0 2 y 0 Januar citiesRural(7) −0.583−1.510−1.015−1.056−1.220−0.934−0.656−1.112−1.359−1.281−1.136−1.014−0.898−1.326 7:51 1 elasti aruddin At 1 edown-priceUrban(6) −0.420−1.897−1.022−1.062−1.180−0.934−0.778−1.141−1.376−1.254−1.170−1.022−0.879−1.194 din Fah mpensat aharud Uncoverall(5) 0.5081.6671.0181.0591.1970.9340.7341.1261.3681.2661.1531.0180.8891.242 F O −−−−−−−−−−−−−− or ct o D y nloaded b citiesRural(4) 0.4620.7670.7100.9661.5640.9631.9060.7910.9131.4820.7400.7840.9251.548 Dow ureelastiUrban(3) 0.3050.7690.7280.9701.4450.9311.6500.7910.8991.4210.7200.7770.9261.301 dit n e p Exall 08884501670060 Over(2) 0.390.760.710.961.490.941.740.790.901.440.730.780.921.39 n o ati ul c nts cal Foodgroup(1) RiceNon-ricestaplesTubersFishMeatEggsMilkVegetablesPulsesFruitsOilandgreaseBeverageingredieSpicesOtherfoods’AuthorsSource: fEooxdpprergunicrrdoaeiulteupclarlaeasTsntasiadcnibfidtiulcieeraobstwIaiboInnIyn.-- JADEE not have much effect on rice consumption. Expenditure elasticities for rice and other 7,3 foodsdifferthemostbetweenurbanandruralareasascomparedtotheotherfoodgroups. For the fourth food group, namely, meat, milk, fruits, and other foods, the elasticity of expenditure is higher than the own-price elasticity, which suggests that the income effect onhouseholdconsumptionishigherthanthepriceeffectis.Bycontrast,eightfoodgroups have own-price elasticities that are higher than their expenditure elasticities, namely, rice, 206 non-rice staples, tubers, fish, vegetables, pulses, oil and grease, and beverage ingredients. For those eight groups, the price effect on household food consumption is higher than the incomeeffectis. Six food groups have absolute values of uncompensated own-price elasticities that are close to 1, that is, between 0.9 and 1.1; these include tubers, fish, eggs, vegetables, oil and grease,andbeverageingredients.Thisindicatesthatthepercentageincreaseinthepricesof foodsinthesegroupsisalmostproportionaltothepercentagedecreaseinfoodconsumption. T) Thehighestown-priceelasticitiesarefoundforpulses,otherfoods,andfruits,butthelowest P 8 ( alsobelongtorice.Asamainfoodcommodity,ricehasthelowestexpenditureandown-price 1 0 elasticities,whererisingincomesandachangeinricepricesdonothavemucheffectonrice 2 y consumption.Comparedtotheuncompensatedown-priceelasticities,allofthecompensated ar nu own-priceelasticitieshavelowerabsolutevalues,whichshowsthattheeffectofrisingfood a 0 J pricesonfoodconsumptioncanbeloweredthroughcompensation. 1 1 Formostfoodgroups,theabsolutevaluesofthecross-priceelasticityareverysmall,i.e., 7:5 closeto0.Fromthis,itcanbeconcludedthattheconsumptionofmostfoodcommoditiesis At 1 independentofthepriceofothersimilarfoods.Nonetheless,ariseinthepriceofriceand n vegetablescausesthemostresponseintermsoftheconsumptionofotheralternativefoods, di butelasticityisstillverylow(thecross-priceelasticitycanbeseeninTablesAI-AVI). d u ar h Fa Nutrientelasticities n di Table IV presents nutrients elasticities of food consumption in Indonesia. All of the d u expenditureelasticities(asaproxyofincomeelasticities)arepositive,whichisinlinewith ar h thetheorythatrisingincomesleadtoincreasesinnutrientsconsumption.Bycontrast,most a or F of the price elasticities are negative, meaning that an increase in food prices leads to a ct decline in nutrients consumption, although not entirely. Some positive values of price o D elasticitiesarisebecausethesefoodgroupsdonotcontainthecorrespondingnutrients. y b Intheoverallmodel,theexpenditureelasticitiesrangedfrom0.707forcarbohydratesto d e 1.085 for fats. The consumption of fats and proteins is more elastic with respect to d oa expenditurethanistheconsumptionofcaloriesandcarbohydrates.Thismeansthatrising nl w expendituresorincomesleadtothehigherconsumptionoffatsandproteinscomparedto o D theconsumptionofcaloriesandcarbohydrates.Theseresultsareconsistentwiththoseof Widarjono(2012). In the overall model, the consumption of carbohydrates, calories, and proteins is most affected by changes in the price of rice. A 1 percent increase in the price of rice caused a decrease in the consumption of carbohydrates by 0.327 percent; caloric consumption decreasedby0.238percent;andproteinsconsumptiondecreasedby0.216percent.Whilethe consumptionoffatsismostaffectedbythepricesofoilandgrease,otherfoods,andmeat,in which a 1 percent increase in the price of oil and grease will reduce fats consumption by 0.347percent,a1percentincreaseinthepricesofotherfoodsloweredfatsconsumptionby 0.230percent,andanincreaseinmeatpricesalsoreducedfatsconsumptionby0.197percent. Anincreaseinthepricesofotherfoodsalsoaffectscaloricconsumption;thatis,a1percent riseinthepriceofotherfoodscausedadeclineincalorieconsumptionby0.130percent. Inadditiontothefourfoodgroupsmentionedabove,fishisanotherfoodgroupthathas relativelyhighpriceelasticityofnutrientsconsumption.A1percentincreaseinthepriceof fishcausedadeclineintheconsumptionofproteinsby0.173percent.Thus,intheoverall