Dampak Peningkatan Harga Pangan Terhadap Kesejahteraan Rumah Tangga Di Wilayah Rawan Pangan Sumatera

Maulana Malik Sebdo Aji and Nuri Nasriyah

No b7ecy, OSF Preprints from Center for Open Science

Abstract: This study aims to analyze the general picture of food consumption and food demand response to changes in income, prices, demographic variable, and the impact of rising food prices on household welfare in household food insecure areas ofSumatera. This study uses raw data obtained from 2018 The National Socio-Economic Survey (Susenas) BPS-Statistics. The sample comprises 12,606 households in Sumatera’s food-insecure areas. A Quadratic Almost Ideal Demand System (QUAIDS) is employed to estimate price and income elasticities, as well as the impact of demographic and geographical factors on food demand patterns. Compensating Variation (CV) is used to estimate changes in household welfare due to an increase in food prices. Ten aggregate commodity groups were chosen for this analysis: rice; non-rice grains and tubers, fish, shrimp, squid, shellfish; meat; eggs and milk; vegetables, fruit and nuts; oil and coconut; prepared food; other consumption; and cigarettes and tobacco. The results show that the higher the increase in food prices, the more reduction in household welfare. The proportion of household expenditure in Sumatera's food-insecure areas is dominated by food consumption. The proportion of household food expenditure in Sumatera's food-insecure areas is still dominated by food expenditure. The income elasticity of all food groups is positive. Meanwhile, the value of the price elasticity of the entire food group is negative and to interpret it is absolute so it is positive. The value of cross-price elasticity varies between food groups. Income, price, and demographic variables except head of household sex and poverty status have an effect on the pattern of food consumption. An increase in food prices reduces household welfare. Policy advice for the government is to increase the income of the household in Sumatera food-insecurity area, maintain price stability or reduce food prices.

Date: 2021-08-17
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:b7ecy

DOI: 10.31219/osf.io/b7ecy

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