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Fungsi Permintaan BBM Versi Model Rotterdam di Indonesia Selama Pemerintahan Orde Baru

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  • Alfian Lains

Abstract

Many Studies have been taken to estimate fuel demand of Indonesia Each with its weakneses. eg., in the assumption they adopt, over simplification of the model, etc. In econometric studies we must aware about the estimator we used. This is espesially true in case of non linear model. This article tries to specify the demand function for fuel in Indonesia, based on the Rotterdam Model. Estimation is done for the period of 1971—1984. The result of the exercise is analyzed, and the policy implication of the empirical findings is presented. The study showes that an increase in cunsumer income led to an increase of consumption of fuel, not only kerosene, but also through increased demand for travel, which in turn increases the demand for transportation land, sea, and air transport. Since for the majority of Indonesians (esp. rural) traveling is still a luxury, it can be said that fuel consumption can be regarded consumption of luxury goods.

Suggested Citation

  • Alfian Lains, 1989. "Fungsi Permintaan BBM Versi Model Rotterdam di Indonesia Selama Pemerintahan Orde Baru," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 37, pages 49-81, Maret.
    • Handle: RePEc:lpe:efijnl:198902
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    Keywords

    model; pendapatan; variabel; konsumen;
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