Poverty Conditions and Patterns of Consumption: An Engel Function Analysis in East Java and Bali, Indonesia

Asian Economic and Financial Review

article

Mohtar Rasyid¹  Anita Kristina¹  Sutikno¹  Sunaryati²  Tutik Yuliani³ 

[1] Faculty of Economic and Business, Universitas Trunojoyo Madura;Faculty of Islamic Economics and Business;Faculty of Teacher Training and Education, Universitas Balikpapan

关键词: Consumption;    Poverty;    Income;    Engel function;    Household;    Elasticity.;   

DOI  :  10.18488/journal.aefr.2020.1010.1062.1076

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This paper aims to analyze consumption patterns of various household goods. The data used in this study was sourced from results of household surveys in the East Java and Bali Provinces in Indonesia. The analytical model used to evaluate household consumption patterns was the Engel function. Engel's function model maps the level of consumption to household income. In this study, the explanatory variables used include household expenditure levels, household characteristics and household poverty conditions. The results showed that the consumption of staple foodstuffs was relatively inelastic in terms of an increasing household expenditure. Moreover, the consumption of processed food is relatively more elastic in terms of expenditure. The study also found that poor households have a different consumption pattern in comparison to non-poor households. Poor households allocate less income to basic necessities that are important for health, such as vegetables, meat and fish. The implication is that government assistance for poor households must be accompanied by education on healthy consumption patterns.

【 授权许可】

CC BY