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2006

Iowa State University

CARD Working Papers

Double-hurdle demand

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Westernization Of The Asian Diet: The Case Of Rising Wheat Consumption In Indonesia, Jacinto F. Fabiosa Apr 2006

Westernization Of The Asian Diet: The Case Of Rising Wheat Consumption In Indonesia, Jacinto F. Fabiosa

CARD Working Papers

With sustained income growth and fast urbanization, Indonesia will see a major shift in the growth of grain consumption from rice to wheat products. New demand estimates from consumption survey data give a relatively high income elasticity of demand for wheat-based products, in the range of 0.44 to 0.84, with 26% to 34% of this response coming from the impact of income on the probability of consumption for non-consuming households and the remaining impact coming from the response on the level of consumption for households currently consuming wheat products. Urban location of households also contributes an increase of ...