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Demand Elasticities for Selected Seasoning Commodities: An Almost Ideal Demand System with Instrumental Variables

Muhamad Fathul Muin

Economic Studies / Estudios de Economia2025https://doi.org/10.4067/s0718-52862025000200309article
ABDC C
Weight
0.50

What the paper says

This study analyzes the consumption elasticities of five key seasoning commodities in Indonesia: cooking oil, red onion, garlic, red chili, and cayenne pepper.A Linear Approximate Almost Ideal Demand System (LA/AIDS) model is employed, incorporating instrumental variables to address potential endogeneity.The results indicate that the unconditional income and own-price elasticities are inelastic, with income elasticities ranging from 0.74 to 0.75 and own-price elasticities from -0.77 to -0.94.No significant evidence of substitution or complementarity among the seasonings is found.Furthermore, elasticity remain similar before and after the COVID-19 pandemic, and across regions with different economic sizes.However, regions known for spicy cuisines demonstrate higher elasticities than those with milder culinary traditions.

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https://doi.org/https://doi.org/10.4067/s0718-52862025000200309

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@article{muhamad2025,
  title        = {{Demand Elasticities for Selected Seasoning Commodities: An Almost Ideal Demand System with Instrumental Variables}},
  author       = {Muhamad Fathul Muin},
  journal      = {Economic Studies / Estudios de Economia},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.4067/s0718-52862025000200309},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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