Price endogenous analysis of agricultural policies in East Java, Indonesia
Darmawan, Delima Hasri Azahari
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https://hdl.handle.net/2142/18928
Description
Title
Price endogenous analysis of agricultural policies in East Java, Indonesia
Author(s)
Darmawan, Delima Hasri Azahari
Issue Date
1991
Doctoral Committee Chair(s)
Onal, Hayri
Department of Study
Agr & Consumer Economics
Discipline
Agricultural Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Mathematics
Economics, Agricultural
Engineering, Agricultural
Language
eng
Abstract
The agriculture sector of East Java, which is a major food production center in Indonesia, played a major role in the economic development of Indonesia in the past twenty five years. Several forms of agricultural policies have been designed and implemented to continue this contributing role. This study aims to evaluate these policies and to assess the impacts of certain policies changes in a price endogenous modelling framework.
A price endogenous mathematical programming sector model is developed for the East Java region, including different farm sizes, land types and multiple crop production alternatives. The sector model is used to specifically analyze the effects of financial, price and subsidy policies related to East Java agriculture, and to identify economic consequences of policy reforms. The results show that important gains may be obtained with the proposed policy alternatives, but the distribution of gains among consumers and producers may be an important issue for policy makers to consider.
A multilevel programming model is then developed, including the sector model as the subproblem, to analyze credit distribution among farm groups--which is an important agricultural policy issue. The results of the multilevel programming analysis indicates a substantially different credit distribution than the present allocation, where small farms receive a larger share than their present share, and a significant improvement on the agricultural sector's overall performance.
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