Munich Personal RePEc Archive

The Impact of Economic Crisis on Welfare of Rural and Urban Households: a Case Study of Indonesia

Widodo, Tri (2000): The Impact of Economic Crisis on Welfare of Rural and Urban Households: a Case Study of Indonesia.

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Abstract

The economic crisis has led to decreases in the welfare of urban and rural households. This paper applies EV (equivalent variation) and CV (compensating variation) derived from the Linear Expenditure System (LES) to calculate the change in the welfare of urban and rural households that were caused by changes in income and prices. This paper has several conclusions. First, urban families were affected by the crisis in more severe condition rather than rural families. Second, among the regional -Sumatra, Java, Kalimantan, Sulawesi and others-urban and rural families in Kalimantan were affected by the economic crisis in the worst condition than the other regions.

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