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Nama
: HANDANI MURDA
Universitas Indonesia
ABSTRACT
Name
:
Study Program :
Title
:
HANDANI MURDA
Science of Economics
The Impact of Price Increase of RASKIN on Welfare and
Nutritional Intake of Poor households in Indonesia
This study attempts to calculate the impact of price increase on welfare and
nutritional intake of poor household with different social demographic
characteristics. The method used is descriptive analysis and econometrics using
2007 SUSENAS Panel data with LA/AIDS model is estimated with Ordinary
Least Square (OLS). The data was aggregated and two step heckman procedure
was conducted to overcome the selectivity bias and use the price instrument
variable to overcome simultaneity bias, quality effect and quantity premium.
Restriction implied in this model are symmetry, homogeneity, and adding-up in
order to satisfy demand theory.
Calculation of demand elasticity show that all food groups are normal goods
and almost all groups are included in the necessities category. The group of other
foods included in the luxurious category for the overall household and poor
households. The influence of rice price toward demand all groups of food groups
is greater than the influence of non rice price toward demand rice. Elasticity of fat
for poor households is the most elastic among the other nutritient. All nutrients are
normal goods and almost all nutrient are included in the necessities category,
except fat of poor households is included in the luxurious category.
The Government policy to increase RASKIN price in January 2008 to Rp
1,600 per kg resulted in real expenditure of poor household decreased 2.73%. The
greatest impact of RASKIN price changes on real expenditure is suffered by poor
households with characteristics: living in rural areas, headed by woman, the
number of household member is more than 4 people and poor households with the
main income is from agricultural sector.
Similarly, the policy to increase RASKIN price resulted in nutrional intake
of poor household decrease. The decline in the consumption of carbohydrate,
protein, calories, and fat respectively was 2.62%, 1.99%, 1.95% and 0.34%. The
greatest impact of RASKIN price changes on consumption of carbohydrate,
protein, calories is suffered by poor households with characteristics: living in
urban areas, headed by woman, the number of household member is more than 4
people and poor households with the main income is from non-agricultural sector.
While the largest decrease in fat consumption also occurred in poor households
with similar characteristics, except for poor households in rural and urban areas
suffer the same big impact.
Key word:
Real expenditure, nutritional intake, LA/AIDS, quality effect, quantity premium,
simultaneity bias and selectivity bias.
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Universitas Indonesia