Abstract
This paper aims to prove the effects of avian influenza on the household expenditure in Indonesia using individual data from the household survey (Indonesia Family Life Survey) conducted by RAND corporation, Gadjahmada University and Survey METRE institute in 2007. The results demonstrated that avian influenza has a negative impact on household expenditure in rural Indonesia. In addition, participating in Arisan (rotating credit associations), employment in the non-agriculture sector and raising educational level have a positive impact on household expenditure in Indonesia.
