Variental Choise And Input Deman In Rice Production In Indonesia
Sumodiningrat,Gunawan, Welsch,Delane E.Prof.
1982 | Disertasi | S3 Economics-
Understanding the decision making processes of farmers in developing countries is very important when designing policies to influence their behavior. Most studies which test the economic rationality of resource allocation decisions by farmers did not treat rice variety as a choice variable and, therefore, tended to underestimate the price elasticity of input demand.
This study adopts the framework of Hayami and Ruttan in postulating that cultivators respond to prices along a meta ¬production function. The min procedure was to derive the total elasticity of input demand, in which the sources of c1errand were disaggregated into fanners who had aa.optec1 the high-yielcli.ng varieties (HYV) and fanners who had not. In approaching this problem, the total factor demand was disaggregated into two components, namely: the variety choice response and the input demand response. First, a logistic equation is used to estimate the adoption response as a function of economic and environmental factors. Second, the translog cost function is employed to estimate the derived input demand for both HYV adopters and non adopters. Third, the total response is then computed by combining the adoption response calculated from logistic function with the input demand response derived. from the trans log cost function. The overall results are satisfactory in both the adoption rate and the input demand elasticities are estimated with precision.
The estimates of the logit equation suggest that the HYV rice will be further adopted if relative output to input prices are higher than currently. With respect to the exogenous fixed inputs, an improvement in irrigation at the farm level, a larger size of area operated and the improvement of formal and non-formal education of farm operators, in particular the knowledge of better cultivation methods, results in HYV becoming more attractive.
The estimated parameters of the cost function suggest that fertilizer is a very important determinant of costs. An improvement in the relative price of rice to fertilizer will induce farmers to use more fertilizer and therefore increase their rice production.
Kata Kunci : rice production,variental demand of rice
