Food Demand for Carbohydrate Sources: Linear Approximation-Almost Ideal Demand System/LA-AIDS Approach

Abstract

The most suitable system demand model for food analysis is the LA-AIDS model. This study aims to analyze the estimated demand for carbohydrate sources of food, analyze the demand for carbohydrates from rural households, and analyze the food demand for carbohydrates from urban households. This study uses data from the 2016 National Socio-Economic Survey (Susenas). Data were analyzed using the Linear Approximation-Almost Ideal Demand System (LA-AIDS) model. The results of the analysis show that the demand for carbohydrate-sourced food differs between rural and urban households which are influenced by price, income, and number of household members. When viewed from the elasticity of demand, rice and corn are commodities that are inelastic to changes in household expenditure. Wheat is a superior commodity in both rural and urban areas. Meanwhile, sweet potato and cassava are elastic in terms of expenditure for rural households. However, each household allocates higher consumption expenditures for rice compared to other commodities. In line with the analysis of expenditure elasticity, rice has the most inelastic price elasticity compared to other commodities. In addition, the effect of changes in rice consumption on changes in prices of other commodities is lower than the effect of changes in rice prices on the consumption of other commodities. This condition explains that among other commodities, the demand for rice to meet the needs of carbohydrates in the body is the highest. So that efforts are needed from the government to maintain the stability of rice commodity prices in the market.