CONSUMPTION AND DEMAND ESTIMATION OF BROILER CHICKEN AT HOUSEHOLD LEVEL IN EAST JAVA: IMPLEMENTATION OF QUADRATIC ALMOST IDEAL DEMAND SYSTEM MODEL (QUAIDS)
Fitrotul Laili*, Ratya Anindita
Jurusan Sosial Ekonomi, Fakultas Pertanian, Universitas Brawijaya
*Penulis korespondensi: laili.brawijaya.university@gmail.com
ABSTRACT
This study aims to analyze consumption and demand estimation of broiler chicken in East Java.
This analysis is conducted at the level of households in East Java, which is differentiated by
region (rural and urban), estimated using the Quadratic Almost Ideal Demand System
(QUAIDS) model. The results showed that Marshallian elasticity indicates that broiler chicken
in East Java has elastic properties both in rural and urban areas. While on cross elasticity
which indicate substitution relation. While the Hicksian elasticity showed that broiler chicken
in East Java is elastic and has a complementary relationship between animal food commodities.
Furthermore, based on expenditure elasticity, broiler chicken in East Java categorized as a
normal goods.
This analysis is conducted at the level of households in East Java, which is differentiated by
region (rural and urban), estimated using the Quadratic Almost Ideal Demand System
(QUAIDS) model. The results showed that Marshallian elasticity indicates that broiler chicken
in East Java has elastic properties both in rural and urban areas. While on cross elasticity
which indicate substitution relation. While the Hicksian elasticity showed that broiler chicken
in East Java is elastic and has a complementary relationship between animal food commodities.
Furthermore, based on expenditure elasticity, broiler chicken in East Java categorized as a
normal goods.
Keywords: Demand, Elasticity of demand, Cross Elasticity
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