The impact of government consumption on the private expenditures in developing country: the case of Indonesia

Kuncoro, Haryo

doi:10.15208/beh.2018.1

Cited by 7 publications

(6 citation statements)

References 27 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Some researchers, such as Ngui et al (2011), Sakyiamah (2018, Gostkowski (2018), Satari and Mehrjo (2020), Nsabimana et al (2020), Korir et al (2020), andVargas-Lopez et al (2022), also incorporate household demographic factors in their demand models. Studies on Indonesia's food demand (Jensen & Manrique, 1998;Kuncoro, 2018;Suriani et al, 2018;Wijayati et al, 2019;Amalina et al, 2020;Firdauzi, 2021;Suryanty & Matsuda, 2022) often look at demographic factors. Table 1 describes the variables used in the study.…”

Section: Methodsmentioning

confidence: 99%

Effects of COVID-19 on Food Demand in Rural Indonesia: The Case of Bengkulu Province

M.Sn¹,

Matsuda²

2023

JAS

View full text Add to dashboard Cite

This paper examines food demand before and after the outbreak of COVID-19 and studies the effects of the situation on households’ demand for food in rural Indonesia, in the case of Bengkulu Province. The research data is taken from the Indonesia Socio-Economic Survey (SUSENAS) as a microdata set which is collected annually by Indonesia Central Statistics Agency (BPS) from 2017 to 2021. The effect of COVID-19 on food demand estimates using the Quadratic Almost Ideal Demand System (QUAIDS). The results demonstrate that prepared food expenditure is the largest portion of household expenditure on food in the Bengkulu rural area. Before the outbreak of COVID-19, animal source food is the most sensitive to food expenditure, but after the outbreak, prepared food is the most sensitive. Staple food is the most expenditure-inelastic before and after the outbreak. Expenditure for animal source food, vegetables & fruits, and prepared food have significant differences between before and after the outbreak. All the food groups substitute for each other before the outbreak, whereas staple food and prepared food cannot be regarded as a substitute for each other after the outbreak. There are eleven of the compensated price elasticities whose differences between before and after the outbreak are significant, whereas as a set the compensated price elasticities are significantly different between before and after the outbreak. Other food is the easiest to be substituted for both phases. Prepared food is the most difficult to be substituted before the outbreak, but the staple food is the most difficult to be substituted after the outbreak. After the outbreak of COVID-19, the demand for vegetables & fruits increases, but the demand for staple food and prepared food decreases, ceteris paribus. Family size, children, gender, age, and other demographics variables have an impact on household food demand. These findings imply that after the outbreak, the supply of vegetables & fruits should be increased and that government support for suppliers of staple food and prepared food will be preferable.

show abstract

Section: Methodsmentioning

confidence: 99%

Effects of COVID-19 on Food Demand in Rural Indonesia: The Case of Bengkulu Province

M.Sn¹,

Matsuda²

2023

JAS

View full text Add to dashboard Cite

show abstract

“…(12) where ∆ is the first difference operator and EC it-1 is the error correction component created from the long-run demand system, i. e. the static almost demand system as specified by Equation ( 8). The application of error correction model has been extensively employed not only in the analysis of international reserves (Badinger, 2004;Gosellin and Parent, 2004;Prabeesh et al, 2007;Diwantari, 2010, andOyeniran andAlamu, 2020) but also in the macroeconomic policy (Kuncoro, 2018;2019) and services industry (Yoon and Heo, 2017). It seems more straightforward to directly analyse those variables.…”

Section: Analytical Frameworkmentioning

confidence: 99%

Modelling the Demand for Indonesia’s Foreign Reserves

Kuncoro,

Pardede

2024

Economics

Self Cite

View full text Add to dashboard Cite

The foreign reserves sufficiency is important to maintain macroeconomic stability. The main objective of this paper is to model the behaviour of the central bank in accumulating the foreign reserves in the case of Indonesia. Unlike the previous empirical studies, this paper disaggregates the components of foreign reserves into foreign currency, securities, gold, and special drawing rights. This paper relies on the Almost Ideal Demand System combined with the Error Correction Model. The estimation result for monthly data over the period 2010(1)-2020(12) reveals that the own-price coefficients are negative and statistically significant which is consistent with the standard theory of demand. While the foreign currency-securities pairwise is substitutive, the foreign currency-gold and the foreign currency-special drawing rights pairwise are complementary or even independent. However, the wealth effect is inelastic except for securities reserves. These results imply that the central bank of Indonesia can re-balance its reserves. The securities holding which have the highest proportion of foreign reserve scan be switched to foreign currency, gold, and/or special drawing rights. The rebalancing measures would remain having an optimal level of foreign reserves holding in terms of its opportunity cost. Therefore, the monetary authority can conduct a further macroeconomic stabilisation without substantially losing the returns.

show abstract

“…The results confirm that government spending complements household consumption. As the economy grows, the government's economic policies should tend to focus more on economic stabilization [14]. The literature mentioned above shows the importance of complementarity/substitutability between government spending and private consumption.…”

Section: -Literature Reviewmentioning

confidence: 99%

The Complementary Effect between Private Consumption and Government Spending: Effect on the Economy

Kida

2021

Emerg Sci J

View full text Add to dashboard Cite

This paper analyzes the relationship between final consumption and government spending, using the correlation and linear regression model. The objective of the research is whether government expenditures are complementary, substitute, or not related to private consumption to give positive effects on the economy. Methodology, quantitative secondary data were obtained from the World Bank, for five countries and processed with SPSS, 21. The empirical analysis was verified through, Bivariate and Partial correlation and normality test. The Result, first, shows that government spending complements and replaces final consumption. Second, it is also confirmed that even when interacting with other variables, the complementary effect of final consumption is not eliminated despite the shocks coming from government spending. Third, by adding other variables to the model, the issue of complementarity and substitutability of the two main variables is not lost. As a result, findings, confirm that private consumption (InCt) and government spending (InGt), Gross Savings (GS), and per capita income (GDPpc), are in statistically significant and positive relationships with each other. The novelty of the paper is, government expenditures cause an increase in private consumption is to high value, showing the complementary effect of government expenditures on private consumption. Based on health expenditures, education, public order, internet provided by the state have increased the demand of families for these services, causing an increase in the share of services provided by the private sector.JEL Classification: E21; H5; E2; R0. Doi: 10.28991/esj-2021-01292 Full Text: PDF

show abstract

The impact of government consumption on the private expenditures in developing country: the case of Indonesia

Cited by 7 publications

References 27 publications

Effects of COVID-19 on Food Demand in Rural Indonesia: The Case of Bengkulu Province

Effects of COVID-19 on Food Demand in Rural Indonesia: The Case of Bengkulu Province

Modelling the Demand for Indonesia’s Foreign Reserves

The Complementary Effect between Private Consumption and Government Spending: Effect on the Economy

Contact Info

Product

Resources

About