Disaggregated welfare effects of agricultural price policies in urban Indonesia

This paper presents a theoretically consistent methodology that could be used to measure changes in different income groups' welfare level caused by alternative price policies. The paper details the basic stages of the methodology: classification of households in income groups, estimation of demand systems for each income group, and measurement of welfare changes using compensating variation measures. The methodology was applied to data related to expenditure and socioeconomic characteristics of Indonesian Urban households. A simulation analysis measuring the welfare changes under different pricing scenarios showed that the welfare of the low-income households was affected most by increases in the prices of rice and fish

Estimating demand for food commodities by income groups in Indonesia

An analysis of the structure of demand was performed on household data, classified into income groups for urban Indonesia. A demographically augmented Linearized Almost Ideal Demand System was used to estimate the structural parameters of the demand equations. Endogenous switching regressions techniques yielded unbiased and consistent demand parameter estimates for the low income group, which had a large number of zeros for some food groups. Standard seemingly unrelated equation techniques were used to estimate the demand parameters for the other income groups. The results showed demands for the medium-high and high income households to be responsive to prices, income and demographic variables. Demands for the medium-low income households were responsive to income and prices only. Demands for lowincome households were responsive to income and prices of rice and fish only

Estimating demand for food commodities by income groups in Indonesia.

An analysis of the structure of demand was performed on household data, classified into income groups for urban Indonesia. A demographically augmented Linearized Almost Ideal Demand System was used to estimate the structural parameters of the demand equations. Endogenous switching regressions techniques yielded unbiased and consistent demand parameter estimates for the low income group, which had a large number of zeros for some food groups. Standard seemingly unrelated equation techniques were used to estimate the demand parameters for the other income groups. The results showed demands for the medium-high and high income households to be responsive to prices, income and demographic variables. Demands for the medium-low income households were responsive to income and prices only. Demands for lowincome households were responsive to income and prices of rice and fish only.Endogenous Switching Regressions; Income Groups; Zeros; Indonesia;

Indonesian Agriculture and GATT

This paper attempts to determine the possible impacts of a General Agreement on Tariffs and Trade (GATT) agreement on the Indonesian agricultural sector. The emphasis of the study is analytical. In particular, the study focuses on how eliminating internal price support policies and trade barriers will affect agricultural production, food security, the Indonesian trade position in world agricultural markets, and income distribution among the urban and rural sectors and low- and high-income farmers over the short and long terms. A liberalized trading system is expected to contribute to a stable Indonesian food supply

SPANISH HOUSEHOLD DEMAND FOR SEAFOOD PRODUCTS

Consumption of seafood products in Spain has increased recently. Data from a nationally representative household budget survey are used. A double-hurdle model, applied to expenditures on fresh and processed seafood, shows the value of women's time, income and demographics to be determinants of participation and expenditure on seafood products.Consumer/Household Economics,

A methodology to evaluate the welfare effects of alternative agricultural price policies in urban Indonesia

The presentation of a theoretically sound and consistent methodology that could help policymakers to evaluate the welfare effects of alternative price policies was the focus of this Dissertation work. The proposed methodology had three basic stages: (1) classification of households in income groups; (2) estimation of demand systems for each of the newly formed income groups; and (3) measurement of welfare changes by means of estimating compensating variation measures from the underlying cost functions;The classification of households in income groups was based on an indepth understanding of the behavior of households as it relates to the acquisition of goods. Technically speaking, the methodology to classify households was based on an analysis of homoskedasticity of variances of residuals from regressions of Engel relationships. Four income groups were established. The Almost Ideal Demand System (AIDS) was used in this study to estimate the structural parameters of the demand equations for each income group. Household characteristics were incorporated by the demographic translating technique. The proportion of observations reporting zero expenditures for some food groups conditioned the methodology for the estimation of the AIDS models. Endogenous switching regressions techniques were used to get unbiased and consistent AIDS demand parameter estimates for the low income group. Standard seemingly unrelated equation techniques were used to estimate the AIDS demand parameters for the medium-low, medium-high and high income groups;The final stage of the proposed methodology implied the estimation of compensating variation measures. The following main policy implications were drawn from a simulation analysis of single and multiple price changes: the most appropriate policy was a direct transfer scheme to low income households only; reductions of direct and indirect price subsidies for meats and dairy products affected minimally low income households; increases in price of fish affected mainly low income households

Spanish Household Demand for Seafood

Seafood is an important food commodity in Spain, the second largest consuming nation of seafood in the world. Today, several changes in demographics, socioeconomic factors, and lifestyle changes have affected demand for seafood products. Double-hurdle models allow an examination of Spanish household expenditures on these products and explicitly account for the value of women\u27s time. The empirical evidence shows that the set of statistically significant factors in the participation and expenditure equations is not the same for fresh and processed seafood goods. Income and household demographic variables are important determinants of both participation and expenditures on seafood products. In addition, the value of women\u27s time affects expenditures on processed products, which include frozen, cured, and canned seafood goods

Disaggregated Welfare Effects of Agricultural Price Policies in Urban Indonesia

Historically, the Government of Indonesia has intervened in food markets to control and stabilize food prices. Recently, policy has changed and input and food subsidies have been reduced. The resulting food price increases have had effects on consumers that differ among income groups. This paper develops a theoretically consistent methodology to measure changes in different income groups\u27 welfare. Results show the importance of considering distributional effects of policy changes and of developing appropriate targeting of food policies

Demand for Food Commodities by Income Groups in Indonesia

An analysis of the structure of demand was performed on household data classified into income groups for urban Indonesia. A demographically augmented Linearized Almost Ideal Demand System was used to estimate the structural parameters of the demand equations. Endogenous switching regression techniques yielded unbiased and consistent demand parameter estimates for the low income group, which had a large number of zeros for some food groups. Standard, seemingly unrelated, equation techniques were used to estimate the demand parameters for the other income groups. The results showed demands for the medium-high and high income households to be responsive to prices, income and demographic variables. Demands for the medium-low income households were responsive to income and prices only. Demands for low income households were responsive to income and prices of rice and fish only