Dynamic structure of demand for cassava in Indonesia and its implications for policy
1995
Suharno, P.
By using secondary data, descriptive, regression, and time series analysis, the results showed that the demand for cassava and cassava products was dominated by domestic utilizations, and there were shiftings in the demand structure over time. The shifts were basically from direct consumption demand to derived demands. There was a significant substitution between fresh cassava and maize for direct consumption. The derived demand for "tapioca" with respect to own-price by large and medium scale food processing was mostly elastic. In the analysis of structural changes, it was found out that there were barely any significant changes in the elasticities of demand for cassava and cassava products in the country over the period of 1975-1991. The univariate time series models developed using Box-Jenkins approach, and representing the dynamics of demand for cassava and cassava products, to a certain extent, were found to be reasonably accurate for forecasting. The forecast results of the selected models were comparable to other methods and yet offered more advantages. Some policy implications related to the demand and marketing of cassava and cassava products were suggested
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