Demand for meat in Jakarta : an econometric analysis

Abstract

This study aims to quantify the relationships between consumption, prices and incomes in the demand for individual meats in Jakarta. Using consumer demand theory and previous studies of meat demand, important factors in model specification are considered. A system of meat demand functions is set up in which per capita consumption is hypothesised to be: (1) negatively related to own price; (2) positively related to price of substitutes; and (3) positively related to income. Using quarterly data of 48 observations (1966-77) and a GLS estimator, double log functions are estimated. Data limitations prevented estimation of chicken demand equations and meaningful goat meat equations. The models generally support the stated hypotheses. Interpretation of the results is cautious, because of data limitations. The results suggest that beef and pork demand is own price inelastic and pork is price elastic while both income elasticities are less than unity. Some Evidence of partial adjustment in beef consumption was observed.