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AIDS (Almost Ideal Demand System) model is one of system equation model widely used in demand analysis. AIDS model is derived from indirect utility function which is linear to logarithmic income or budget. However, most of empirical demand studies observed that there is a non-linear relationship between logarithmic of income and expenditure. In order to maintain consistency with a microeconomic theory, a quadratic term in logarithmic income or budget is to be impossed to AIDS model and so called Quadratic AIDS (QUAIDS) model. This paper present a study of QUAIDS model for estimating demand for animal protein products in Indonesia. Data used in this study is household consumption/expenditure data collected by Central Beaureu of Statistics in 2014. Animal protein is grouped in three categories, namely fish, meat, and egg including milk. Rural and urban region is added to the model. Results show that QUAIDS model is a quite good predictory model as shown by coefficient of determination more than 85%. The coefficient of region is significant in all type of commodities, meanwhile the coefficient of income is significant in fish and egg/milk demand function. Expenditure elasticity shows that fish is the most responsive commodity. Cross price elasticity shows that fish and meat are subtituted commodity, while meat and egg/milk are complemented commodity.
Keywords: QUAIDS model, demand function, elasticity, animal protein
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