September 11, 2025AgricOpen Access

Strategic Food Demand Analysis in East Java: An Application of Linear Approximation of the Almost Ideal Demand System Model

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Households in East Java face significant welfare impacts from food price fluctuations, emphasizing the need for strategic price stabilization.
Findings show that Fish & Seafood (47%), Red Meat (19%), and Rice (10%) dominate household food expenditure shares among 32,545 surveyed households.
Using the Linear Approximation of the Almost Ideal Demand System model, the study highlights critical demand elasticities for strategic commodities.
Results indicate that staple items like rice exhibit inelastic demand, while corn and soybeans are highly price-elastic, guiding targeted policy decisions.

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This analysis reveals expenditure patterns and elasticities for key food commodities in East Java, suggesting vital implications for price stability.

Sa’diyah et al. (2025) studied this question.

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This analysis reveals expenditure patterns and elasticities for key food commodities in East Java, suggesting vital implications for price stability.