PRICE VOLATILITY OF SHALLOT AND GARLIC AND EFFECT ON INFLATION IN EAST JAVA

This study aims to analyze changes in prices and volatility of food commodities and their effect on inflation in East Java. The food commodities in this study were shallots and garlic. The purpose of this study is to identify the existence of price volatility of shallots and garlic, this study uses the ARCH / GARCH model. Then, this study uses further analysis using the ECM (Error Correction Model) model to determine the effect of price changes and the volatility of shallots and garlic on inflation in East Java. The ARCH-LM test results show that price volatility occurs in changes in garlic prices. Then the estimation results of the ECM model show that changes in garlic prices, real exchange rates and real interest rates have a significant positive effect on inflation in East Java. In this study, the price of shallots has no significant effect on inflation in East Jav

Willingness To Pay Fair Trade Coffee In Malang East Java Indonesia

Consumption of coffee in Indonesia has seen a significant rise in recent years. Malang is one city in Indonesia were produced coffee big volume. This research seeks to explore the determinants of coffee consumption in Malang with a specific focus on fair trade coffee. In a survey of 140 respondents in Malang City, consumers’ willingness to pay (WTP) for fair trade labeled coffee was measured. This research uses an interval regression to investigate individual demographic and consumption characteristic impacts on WTP. Results show that on average, consumers were willing to pay 22% more for a medium cup of fair trade coffee compared with traditional coffee. In addition, other variables that indicated a higher WTP included female consumers, consumers who made their own coffee, and consumers who planned to consume more coffee in the following year