Food Demand Analysis of Indonesian Households with Particular Attention to the Poorest

The purpose of this study is to analyze the demand responses of Indonesian households to food prices, income changes and other socioeconomic factors. The underlying assumption here is that inadequate information on household food expenditure patterns which vary across income groups and regions may have its contribution to the persistence of food insecurity. We use the Indonesian Family Life Survey data and methodologically we employ an extended form of the Quadratic Almost Ideal Demand System model which includes demographic and regional factors. Results reveal the well known pattern that food demand behavior varies significantly between urban and rural households as well as income groups. The poorest households consume relatively more staple food as well as alcohol and tobacco goods while the richest households consume relatively more meat, snack and dried food. It is shown that the poorest households’ expenditure elasticity on alcohol and tobacco is high implying that the poorest households transfer their extra resources on alcohol and tobacco goods instead of more nutritious food items. Results also show that price and expenditure elasticities have changed across time (1997-2007). Own price elasticities have increased for most food items implying that people have become more responsive to changes in prices. In contrast, the expenditure elasticity has declined for most food items (except for ‘alcohol and tobacco goods’) which would imply welfare improvement since the 1997 crisis.food demand, QUAIDS, Indonesia, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, D11, D12,

District-level Spatial Analysis of Migration Flows in Ghana: Determinants and Implications for Policy

The present study investigates the determinants of inter-district migration flows over the 1995-2000 period in Ghana. A combination of socio-economic, natural and spatial ‘district-level’ attributes are considered as potential variables explaining the direction of migration flows. In addition to the ‘net’ migration model, ‘in’ and ‘out’ migration models are also employed within the context of the gravity model. Results in the three models consistently show that people move out of districts with less employment and choose districts with high employment rate as destinations. While shorter distance to roads encourages out-migration, districts with better water access seem to attract migrants. Generally, people move out of predominantly agrarian districts to relatively more urbanized districts.Gross migration, Net migration, Inter-district migration flows, spatial analysis, Ghana, Africa, Community/Rural/Urban Development, Labor and Human Capital,

Effects of weather shocks on agricultural commodity prices in Central Asia

Higher weather volatility may be reflected in higher incidences of weather shocks. Weather shocks could potentially affect the supply of agricultural commodities and their prices. In this study, the effects of weather shocks on agricultural commodity prices in Central Asia are investigated at the provincial scale using monthly data for the period of 2000-2010. The study uses an innovative estimation method, where the idiosyncratic components of the variables are analyzed using Feasible Generalized Least Squares (FGLS) panel regression in the presence of cross-sectional dependence and serial autocorrelation. The analysis indicates that weather volatility and, especially, the fluctuations in the availability of irrigation water have statistically significant effects on wheat and potato prices in Central Asia. Negative shocks, involving lower than usual temperatures and precipitation amounts, could create favorable conditions for higher wheat prices in the region. Lower availability of irrigation water may encourage irrigation-dependent countries of the region to aggressively raise wheat stocks to face expected supply shortfalls, thus leading to higher regional wheat prices. This effect could be further aggravated by negative impacts of lower irrigation water availability on wheat yields. In order to counteract such developments, it is necessary to devise effective grain storage policies. Regional free trade arrangements in agricultural commodities will also be important to minimize price volatility resulting from weather shocks. For protecting agricultural producers, weather insurance schemes could be introduced. It would be also necessary to make investments into crop breeding and agronomic research for developing new crop cultivars resistant to biotic and abiotic stresses, and on promoting water-efficient crop production technologies

Improving water use efficiency under worsening scarcity: Evidence from the Middle Olifants sub-basin in South Africa

With the political changes in South Africa in the early 1990s, the South African government introduced a reform process in the entire water sector with the goal of a more enhanced and equitable water management system. This paper analyzes existing water allocation situations and applies a nonlinear optimization model to investigate the optimal intra- and inter-regional allocations in the Middle Olifants sub-basin of South Africa. Results show higher benefit from inter-regional water allocation. Reducing water supply levels to conform to the sustainable water supply policy, it can be shown that although water supply is reduced by approximately 50%, total benefits from water are only reduced by 5% and 11% for inter- and intra-regional allocation regimes respectively. These results indicate that alternative water allocation mechanisms can serve as instruments to offset for the effects of water scarcity.Water allocation, IWRM, Olifants basin, South Africa, Africa, Resource /Energy Economics and Policy,

The New Cooperative Medical Scheme (NCMS) and its implications for access to health care and medical expenditure: Evidence from rural China

The New Cooperative Medical Scheme (NCMS) program was implemented in response to illness-led poverty and poor state of healthcare in rural China. Supported by government subsidy, more and more poor rural households are now enrolled in the NCMS. This paper investigates the impact of the NCMS program on improving health care utilization and reducing medical expenditure with a specific focus on the endeavors to unravel the heterogeneous effects of the program for the different regions and income groups. We utilize the China Health and Nutrition Survey data (CHNS) to provide prolific cross section and longitudinal information. A total sample of 6,293 individuals and 2,058 households are included in the analysis. Propensity score matching method and bounding approach are used to infer the causal effect of NCMS and examine the influence of unobservable factors respectively. Major findings indicate that there is a systematic adverse selection in the NCMS program, both in health- and economic-related aspects. Especially in western regions, households with high ratio of migrant workers are less attracted to the NCMS program. The NCMS program improved medical care utilization for the poor and regionally, western regions benefitted more from the program. The NCMS program also induces a moral hazard problem in western regions

The new cooperative medical scheme (NCMS) and its implications for access to health care and medical expenditure : Evidence from rural China

The New Cooperative Medical Scheme (NCMS) program was implemented in response to ‘illness-led poverty’ and poor state of healthcare in rural China. Supported by government subsidy, more and more poor rural households are now enrolled in the NCMS. This paper investigates the impact of the NCMS program on improving health care utilization and reducing medical expenditure with a specific focus on the endeavors to unravel the heterogeneous effects of the program for the different regions and income groups. We utilize the China Health and Nutrition Survey data (CHNS) to provide prolific cross section and longitudinal information. A total sample of 6,293 individuals and 2,058 households are included in the analysis. Propensity score matching method and bounding approach are used to infer the causal effect of NCMS and examine the influence of unobservable factors respectively. Major findings indicate that there is a systematic adverse selection in the NCMS program, both in health- and economic-related aspects. Especially in western regions, households with high ratio of migrant workers are less attracted to the NCMS program. The NCMS program improved medical care utilization for the poor and regionally, western regions benefitted more from the program. The NCMS program also induces a moral hazard problem in western regions

Effects of weather shocks on agricultural commodity prices in Central Asia

Higher weather volatility may be reflected in higher incidences of weather shocks. Weather shocks could potentially affect the supply of agricultural commodities and their prices. In this study, the effects of weather shocks on agricultural commodity prices in Central Asia are investigated at the provincial scale using monthly data for the period of 2000-2010. The study uses an innovative estimation method, where the idiosyncratic components of the variables are analyzed using Feasible Generalized Least Squares (FGLS) panel regression in the presence of cross-sectional dependence and serial autocorrelation. The analysis indicates that weather volatility and, especially, the fluctuations in the availability of irrigation water have statistically significant effects on wheat and potato prices in Central Asia. Negative shocks, involving lower than usual temperatures and precipitation amounts, could create favorable conditions for higher wheat prices in the region. Lower availability of irrigation water may encourage irrigation-dependent countries of the region to aggressively raise wheat stocks to face expected supply shortfalls, thus leading to higher regional wheat prices. This effect could be further aggravated by negative impacts of lower irrigation water availability on wheat yields. In order to counteract such developments, it is necessary to devise effective grain storage policies. Regional free trade arrangements in agricultural commodities will also be important to minimize price volatility resulting from weather shocks. For protecting agricultural producers, weather insurance schemes could be introduced. It would be also necessary to make investments into crop breeding and agronomic research for developing new crop cultivars resistant to biotic and abiotic stresses, and on promoting water-efficient crop production technologies

Food demand analysis of Indonesian households with particular attention to the poorest

The purpose of this study is to analyze the demand responses of Indonesian households to food prices, income changes and other socioeconomic factors. The underlying assumption here is that inadequate information on household food expenditure patterns which vary across income groups and regions may have its contribution to the persistence of food insecurity. We use the Indonesian Family Life Survey data and methodologically we employ an extended form of the Quadratic Almost Ideal Demand System model which in cludes demographic and regional factors. Results reveal the well known pattern that food demand behavior varies significantly between urban and rural households as well as income groups. The poorest households consume relatively more staple food as well as alcohol and tobacco goods while the richest households consume relatively more meat, snack and dried food. It is shown that the poorest households´ expenditure elasticity on alcohol and tobacco is high implying that the poorest households transfer their extra resources on alcohol and tobacco goods instead of more nutritious food items. Results also show that price and expenditure elasticities have changed across time (1997-2007). Own price elasticities have increased for most food items implying that people have become more responsive to changes in prices. In contrast, the expenditure elasticity has declined for most food items (except for 'alcohol and tobacco goods') which would imply welfare improvement since the 1997 crisis

Food demand analysis of Indonesian households with particular attention to the poorest

The purpose of this study is to analyze the demand responses of Indonesian households to food prices, income changes and other socioeconomic factors. The underlying assumption here is that inadequate information on household food expenditure patterns which vary across income groups and regions may have its contribution to the persistence of food insecurity. We use the Indonesian Family Life Survey data and methodologically we employ an extended form of the Quadratic Almost Ideal Demand System model which includes demographic and regional factors. Results reveal the well known pattern that food demand behavior varies significantly between urban and rural households as well as income groups. The poorest households consume relatively more staple food as well as alcohol and tobacco goods while the richest households consume relatively more meat, snack and dried food. It is shown that the poorest households’ expenditure elasticity on alcohol and tobacco is high implying that the poorest households transfer their extra resources on alcohol and tobacco goods instead of more nutritious food items. Results also show that price and expenditure elasticities have changed across time (1997-2007). Own price elasticities have increased for most food items implying that people have become more responsive to changes in prices. In contrast, the expenditure elasticity has declined for most food items (except for ‘alcohol and tobacco goods’) which would imply welfare improvement since the 1997 crisis

Determinants of participation in child’s education and alternative activities in Pakistan

Using data from Pakistan, this study analyzed the effect of various individual, household, and community level characteristics on the probability that children engage in different activities. According to the existing trend of their prevalence, we considered five child’s activities, namely: secular schooling; religious education; child labor; a combination of child labor and secular schooling; and inactivity (including leisure). Data was collected through field surveys conducted in over 40 villages in four Pakistani provinces: Balochistan, Khyber Paktunkhwa, Punjab, and Sind. A total of 963 households were interviewed on the activities of 2,496 children. Multinomial Probit model was used for the analyses. Results indicated that parental perception had significant relationship to the probability of engagement in secular school attendance, religious education, and child labor. In addition, we investigated the relationships between participation in the different child activities with location (rural/urban) and children’s gender. We detected a lower probability of attending secular school and a higher probability of engaging in child labor among female children in rural areas. We also found that even parents who openly expressed appreciation of the importance of secular schooling were more likely to send male children to school than female children.Child productivity, Child’s activities, Parental perception, Gender, Community/Rural/Urban Development, Labor and Human Capital, Teaching/Communication/Extension/Profession,