Household Demand for Food Prepared at Home and Food Away from Home in Indonesia

Ratih Damayanti, Chaikal Nuryakin and Pyan Amin Muchtar
Additional contact information
Ratih Damayanti: Indonesia Statistics
Chaikal Nuryakin: Universitas Indonesia
Pyan Amin Muchtar: Australian National University

Economics and Finance in Indonesia, 2023, vol. 69, 35-46

Abstract: This study aims to analyze the demand for food among Indonesian households, consisting of foods prepared at home (FPAH) and food away from home (FAFH). Utilizing longitudinal data from the National Socioeconomic Survey 2011-2013, combined with the Village Potential Statistics, the study estimates the demand with the Linear Approximated Almost Ideal Demand System (LA/AIDS). The results show that both FPAH and FAFH are normal goods but FAFH is more elastic than FPAH. Additionally, in terms of income elasticity, we found that households show stronger responses in consump- tion on FAFH, compared to FPAH. We also present heterogeneity analysis on different types of household characteristics.

Keywords: household demand; food prepared at home; food away from home (search for similar items in EconPapers)
JEL-codes: D10 D12 I12 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:202303

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