Welfare Accounting and the Reality of Consumption Structure
Reading Household Economic Dynamics in Nusa Tenggara Barat
DOI:
https://doi.org/10.63892/aletheia.3.2026.49-60Keywords:
Household Expenditure, Consumption Structure, Engel Ratio, Welfare, Regional Disparities, West Nusa TenggaraAbstract
Household expenditure dynamics constitute a strategic indicator for assessing welfare quality, purchasing power stability, and regional economic transformation. Nevertheless, empirical studies in Indonesia remain dominated by expenditure-level analysis, while consumption structure receives limited attention. This gap risks welfare mismeasurement by failing to distinguish welfare-driven from price-driven consumption growth. This study aims to examine the growth dynamics of adjusted per capita household expenditure and the transformation of food and non-food consumption structures across districts/municipalities in Nusa Tenggara Barat (NTB) Province. A quantitative descriptive-analytical approach with longitudinal and spatial comparative design was employed within a welfare accounting framework. Secondary data were derived from official household consumption statistics (2010–2025; 2016–2024). Analytical techniques included CAGR, Engel Ratio, welfare typology classification, and spatial-structural interpretation. Findings reveal universal real expenditure growth, with the highest absolute level in Mataram City and the fastest growth in Sumbawa Regency. However, structural transformation remains limited. Most regions retain food expenditure shares above 50%, with increases in several districts, indicating subsistence pressure and constrained diversification toward productive non-food spending. The integrated analysis exposes a welfare paradox: consumption growth does not automatically translate into welfare improvement. The study concludes that NTB’s consumption welfare transformation remains transitional with pronounced urban–rural disparities. Policy recommendations emphasize food price stabilization, income diversification, social investment expansion, and the establishment of regional welfare accounting systems to ensure that consumption growth translates into sustainable welfare gains.
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