Implementation of demand system restrictions and accuracy of QUAIDS model estimator on animal food demand in Indonesia

Demonstration on restrictions and accuracy of an estimator is pivotal since the incomplete will make inaccurate that they cannot be used for need decision making. In this study, demand system’s three primary requirements-adding up, homogeneity, symmetry ‒ are examined. This current research was intended to demonstrate Quadratic Almost Ideal Demand System (QUAIDS) model estimator. The source data referred results National Socio-Economic Survey Indonesia in 2016, involving 291,414 households total. Iterated Nonlinear Seemingly Unrelated Regression method estimation procedure. Parameter calculate elasticity animal protein. have indicated QUAIDS estimator, i. e. adding symmetry, been completed. Further, made by valid efficient; therefore, potentially as a means calculating own cross price elasticity, either Marshallian or Hicksian. addition, some other parameters, such price, income, income squared, also employed elasticity. findings show elastic all proteins, except eggs, which inelastic. Beef most elastic. According results, proteins considered luxury foods Indonesia, less than one. To fulfill Indonesian households’ needs protein, policy more suited beef, while strategy effective including chicken, milk, fresh fish, eggs