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

Ratih Damayanti, Chaikal Nuryakin, Pyan amin Muchtar

Research output: Contribution to journalArticlepeer-review

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 consumption on FAFH, compared to FPAH. We also present heterogeneity analysis on different types of household characteristics.

Original languageEnglish
Pages (from-to)35-46
JournalEconomics and Finance in Indonesia
Volume69
Issue number1
DOIs
Publication statusPublished - 1 Jun 2023

Keywords

  • household demand
  • food prepared at home
  • food away from home

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