INCOME SHOCK, ASSET DAMAGE, AND LOCAL MARKET PRICE RESPONSE ON POST-FLOOD HOUSEHOLD CONSUMPTION PATTERN CHANGE: A PLS-SEM STUDY OF COASTAL COMMUNITIES IN LANGSA CITY, INDONESIA

Rico Syahputra; Imam Gunanjar; Rahmat Maulidan; Muhammad Ridwan Verinanda

doi:10.61677/count.v4i2.1065

Authors

Rico Syahputra Faculty of Economics and Business, Universitas Samudra
Imam Gunanjar Faculty of Economics and Business, Universitas Samudra
Rahmat Maulidan Faculty of Economics and Business, Universitas Samudra
Muhammad Ridwan Verinanda Faculty of Economics and Business, Universitas Samudra

DOI:

https://doi.org/10.61677/count.v4i2.1065

Keywords:

Income shock, household consumption pattern, local market price response, post-flood recovery, PLS-SEM.

Abstract

Flood disasters routinely disrupt the income streams, productive assets, and local market conditions of coastal households, yet quantitative evidence on how these simultaneous shocks reshape household consumption remains scarce in the Indonesian context. Most existing studies are qualitative or descriptive and do not test the underlying behavioral mechanisms in an integrated model. This study examines the effect of income shock, productive asset damage, and post-disaster aid effectiveness on household consumption pattern change, both directly and through the mediating role of local market price response, among coastal households in Langsa City following a flood disaster. A survey of 158 household heads or housewives in five flood-affected sub-districts, selected through stratified random sampling by livelihood group, was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with 500 bootstrap subsamples. The measurement model demonstrated adequate convergent and discriminant validity, whereas model fit was marginal (SRMR = 0.089). Income shock had a significant positive effect on both local market price response and household consumption pattern change, whereas productive asset damage, aid effectiveness, and local market price response itself did not significantly predict consumption change, and no significant mediation was found. These findings indicate that income loss, rather than asset damage, aid distribution, or price movement, is the dominant driver of post-disaster consumption adjustment. The study concludes that market recovery and social protection policies in flood-prone coastal cities should prioritize rapid income restoration for affected households.

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