Open AccessModelling of Poverty Percentage of Non-Food Per Capita Expenditures in Indonesia Using Least Square Spline Estimator
Author(s) -
A. Massaid,
Muhammad Hanif,
Dini Febrianti,
Nur Chamidah
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/546/5/052044
Subject(s) - per capita , economics , consumption (sociology) , per capita income , engel curve , welfare , population , poverty , food consumption , econometrics , estimator , agricultural economics , statistics , mathematics , economic growth , demography , price index , market economy , social science , sociology
The average per capita expenditure is the cost incurred for the consumption of all household members for a month divided by the number of household members. The higher expenditure per capita, the higher level of welfare of the population. In Indonesia, the number of non-food per capita expenditures increases every year and followed by a decrease in the number of poor people. Therefore, it is necessary to investigate the effect of changes in per capita non-food expenditure on the percentage of poor people in Indonesia. To investigate it, in this paper, we use nonparametric regression model based on least square spline estimator that could accommodate the data patterns changing at certain points. The results show that for every one-million-rupiah increase in per capita non-food expenditure, if the expenditure per capita is less than 0.47 million rupiah, the percentage of poverty will decrease 68.71%, and if per capita expenditure is more than 0.47, the percentage of poverty will decrease 5.96%.