DYNAMIC SUPPLY RESPONSE : IMPLICATIONS FOR INDONESIA SOYBEAN CROP

DYNAMIC SUPPLY RESPONSE : IMPLICATIONS FOR INDONESIA SOYBEAN CROP

Dynamic Supply response, Production response, and Soybean crop

The purpose of the study is to explore the supply response model of the soybean crop in terms of alternative specifications also implications economics. To apply model, considerations through the availability of production lags concept also the existence of expected price and gross revenue because of producer’s response explanatorypreference on movement economic situation. The results showed that the existing lags were due mostly to the problems also quick adjustment expenditure rather than correcting expected time. The quantitative result was the same as gross margins and prices alternative specification as the availability of economic decisions. Meanwhile, elasticities price found through the model response specification tended around a fourth of the model applying price specification. The model response specification produced more explanation in terms of production also elasticity of input expenditure. Keywords: Dynamic Supply response, Production response, and Soybean cropINTRODUCTIONThe agricultural sector has to play a crucial role in Indonesia's economic development, where primarily exists an important change in food self-sufficiency also improving food markets nowadays. Efforts toward diversifying economic base through agriculture, increased revenue through money valuating also supporting to nation’s gross domestic product has to evaluate a balanced food supply response characters through the price policy program also another non-price component of food yield. Considering of agricultural supply response on view policy also market characteristics and also planting seasonal is not quickly, but continuous a time-lapse calledlag(Gujarati and Porter, 2009). Such lags offer enough time for decisions that accentuate food accessibility and food security (Tollens, 1998). The past

Edison1,Dharia Renate2, Denny Denmar3

https://dinastipub.org/DIJEFA/article/view/530/325

ediedison950@yahoo.co.id

24 September 2020

University of Jambi

PDF

English

Text