THE IMPACT OF THE UNCONDITIONAL CASH TRANSFER PROGRAM (BLT) ON CIGARETTE CONSUMPTION IN INDONESIAN SOCIETY
https://doi.org/10.22146/jieb.22430 Inayati Nuraini Dwiputri(1*)
(1) Universitas Gadjah Mada
(*) Corresponding Author
Abstract
One of the purposes of the unconditional cash transfer program (Bantuan Langsung Tunai/BLT) was to help the poor and near-poor households to fulfill their basic needs. This study attempted to identify the impact of the BLT on cigarette consumption in society; as it is well known that smoking has more disadvantages than benefits. The study used data from the Indonesian Family Life Survey (IFLS) 2000 and 2007 to capture the impact of the BLT on the cigarette consumption of households. By controlling for the characteristics of the respondents, and using the fixed effect at household and village level as an estimation technique, the empirical results showed that in general there was a changing pattern of cigarette consumption in Indonesian society, to which the BLT program has contributed. By influencing the savings of households, the BLT program has significantly decreased cigarette consumption in Indonesia. It could be explained by the permanent income hypothesis, where the BLT transfer can be categorized as a transitory income in that hypothesis. This study can be an input and consideration for the transfer policy’s implementation in Indonesia in particular.
Keywords
Full Text:
PDFReferences
Abidin, S.Z. (2012). “Bantuan Langsung Tunai dan Dampaknya [Unconditional Cash Transfers and Their Impact]”. http://news.detik.com/kolom/d-1876334/bantuan-langsung-tunai-dan-dampaknya. Accessed 2 July 2014.
Andrews, R. L. & Franke, G. R. (1991). “The Determinants of Cigarette Consumption: A Meta-Analysis”. Journal of Public Policy & Marketing 10(1): 81-100.
Cameron, L., & Shah, M. (2012). Can Mistargeting Destroy Social Capital and Stimulate Crime?: Evidence from Cash Transfer Program in Indonesia. Victoria: Monash University.
Cox, D., Hansen, B. E., & Jimenez, E. (2004). “How Responsive Are Private Transfers to Income? Evidence from a Laissez Faire Economy”. Journal of Public Economics, 2193-2219.
Das, J., Toan Do, Q., & Ozler, B. (2005). “Reassessing Conditional Cash Transfer Programs”. The World Bank Research Observer 20(1): 57-80.
Eshghi, A. & Lesch, W. (1993). “Demographic and Life Style Determinants of Household Consumption Patterns”. Journal of Marketing Theory and Practice 2(1): 80-102.
Friedman, Milton. (1957). A Theory of the Consumption Function. Princeton, N.J: Princeton University Press.
Gallus, S., A. Schiaffino, C.La Vecchia, J. Townsend, & E. Fernandes (2006). “Price and Cigarette Consumption in Europe”. Tobacco Control 15(2): 114-119.
Gertler, P., & Molyneaux, J. W. (1994). “How Economic Development and Family Planning Programs Combined to Reduce Indonesian Fertility”. Demography, 31(1), 33-63.
Heckman, J. J., & Robb, R. (1985). “Alternative Methods for Evaluating the Impact of Interventions: An Overview”. Journal of Econometrics, 30, 239-267.
Hossain, N., Brook, S., Garbarino, S., Notosusanto, S., Noor, I.R., & Seda, F. (2012). Qualitative Assessment: The Social Impacts of Cash Transfer Programmes in Indonesia. Tim Nasional Percepatan Penanggulangan Kemiskinan (TNP2K).
Isdijoso, W., A. Suryahadi, & Akhmadi. (2016). “Penetapan Kriteria dan Variabel Pendataan Penduduk Miskin yang Komprehensif dalam Rangka Perlindungan Penduduk Miskin di Kabupaten/Kota [Establishment of Comprehensive Criteria and Variables on Poor People for their Protection in Districts/Cities]”. The SMERU Research Institute.
Khandker, S. R., Koolwal, G. B., & Samad, H. A. (2010). Handbook on Impact Evaluation, Quantitative Methods and Practices. Washington DC: The World Bank.
Medan, R. (2010). “BPS Harus Ubah Kriteria Masyarakat Miskin [BPS Must Change the Criteria for Being Designated Poor]”. http://www.tribunnews.com/tribunners/2010/10/25/bps-harus-ubah-kriteria-masyarakat-miskin. Accessed 2 July 2014.
Miles, D. (1997). “A Household Level Study of the Determinants of Incomes and Consumption”. The Economic Journal 107(440): 1-25.
Park, C. (2003). “Inter household Transfers between Relatives in Indonesia: Determinants and Motives”. Economic Development and Cultural Change 51(4): 929-945.
Pitt, M. M., Khandker, S., McKernan, S., & Latif, M. A. (1999). “Credit Programs for the Poor and Reproductive Behavior in Low Income Countries: Are the Reported Causal Relationships the Result of Heterogeneity Bias?” Demography, 36(1): 1-21.
Rasyid, M. (2013). “Crowding-out Effect of Cash Transfer Programs on Inter-household Transfers: Evidence from Indonesian Family”. Journal of Economics and Sustainable Development 4(2): 47-53.
Rawlings L.B., & Rubio, G.M. (2005). “Evaluating the Impact of Conditional Cash Transfer Programs”. The World Bank Research Observer 20(1): 29-55.
Ressler P. (2008). The Social Impact of Cash Transfers. Regional Network on AIDS, Livelihoods and Food Security International Food Policy Research Institute.
Romer, D. (2012). Advance Macroeconomics.4th edition. McGraw-Hill. New York.
Sapa.or.id. (2014). “Program Bantuan Langsung Tunai [Direct Cash Assistance Program]”. http://www.sapa.or.id/berita1/99-lainnya/642-program-bantuan-langsung-tunai.html. Accessed 2 July 2014.
Sharma, A., & Lal, D. (2009). “Private Household Transfers and Poverty Alleviation in Rural India: 1998-1999”. The Journal of Applied Economic Research, 3 (2), 97-112.
Shefrin, H. M. & R.H. Thaler. (1988). “The Behavioral Life-Cycle Hypothesis”. Economic Inquiry 26(4): 609-643.
Soares, Fabio V; Ribas, R & Osorio, R. (2010). “Evaluating the Impact of Brazil’s Bolsa Familia: Cash Transfer Programs in Comparative Perspective”. Latin American Research Review 45(2): 173-190.
Suaramerdeka.com. (2014). ‘Subsidi BBM, Antara Kebijakan dan Politis [Fuel Subsidy, Between Policies and Politics]’. http://www.suaramerdeka.com/v1/index.php/read/cetak/2014/04/21/259340/Subsidi-BBM-Antara-Kebijakan-dan-Politis. Accessed 2 July 2014.
Witoelar, F., Strauss, J. & Sikoki, B. (2009). “Socioeconomic Success and Health in Later Life: evidence from the Indonesia family life survey”. RAND Labor and Population Working Paper Series.
Wooldridge, J. M. (2003). Introductory Econometrics: A Modern Approach, Second Edition.
Yamauchi, Chikako (2005). “Evaluating Poverty Alleviation through Microcredit: Methodological and Empirical Evidence from Indonesia”, Job Market Paper, Department of Economics University of California.
DOI: https://doi.org/10.22146/jieb.22430
Article Metrics
Abstract views : 7228
| 
views : 4677
Refbacks
- There are currently no refbacks.
Copyright (c) 2017 Journal of Indonesian Economy and Business
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
| Journal of Indonesian Economy and Business |
| The Journal of Indonesian Economy and Business (print ISSN 2085-8272; online ISSN 2338-5847) is published by the Faculty of Economics and Business Universitas Gadjah Mada, Indonesia. The content of this website is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License |
| © 2019 Journal of Indonesian Economy and Business | Visitor Statistics |