Applying the Input-output Price Model to Identify Inflation Processes

We try to examine the potential of input-output price model to identify mechanisms of price formation and transmission. Contrary to previous research focused on overcoming the specific limitations of the model, we test its overall performance. In the presented study the historical values of the commonly used Consumer Price Index were decomposed according to the classic input-output price model for an open economy. A sequence of ex-post simulations under various assumptions was used to identify the sources of inflation. This study required the use of input – output tables in current and previous year’s prices. The proposed method of decomposition might be a starting point to create a framework for studying different aspects of inflation process.JEL: C67, E31, E37

Choosing a Price and Cost Combination—The Role of Correlation

Often, firms can choose from different combinations of price and cost processes. For example, they can choose between different production locations or technologies, between different products to produce, or between different locations for selling them. To study the choice of the optimal combination, we return to themodel that was developed by Dixit and Pindyck, where both output price and production cost are stochastic processes, and add a novel focus on how the correlation between these processes affects the firm’s decision. We find that, ceteris paribus, the firm prefers the combination with the lowest correlation between the processes, as it seeks a greater profitability variance which maximizes its value.

ANALISIS USAHATANI DAN FAKTOR-FAKTOR YANG MEMPENGARUHI KEUNTUNGAN USAHATANI CABAI MERAH DI KECAMATAN TULANG BAWANG TENGAH KABUPATEN TULANG BAWANG BARAT

This study aims to analyze farming and factors that affecting the profit of red chilli farming in Tulang Bawang Tengah Sub-District, Tulang Bawang Barat Regency. This research uses survey method. The research is located in Tulang Bawang Tengah Sub-Distric, Tulang Bawang Barat Regency, which was conducted in April-May 2019. The number of respondent are 57 farmers taken by random sampling method. Data are analyzed using quantitative and qualitative analysis. Furthermore, farming analysis is analyzed using income analysis and by counting the value of R/C to cash cost and total cost. Factors affecting profit function are analyzed by profit analysis UOP (Unit Output Price), which is a derived of the cobb douglas production function and normalized by output price. The results show that the average income of red chilli farming in Tulang Bawang Tengah Sub-District base on cash costs and the total cost is Rp47,486,701.79/hectare and Rp22,229,238.35/hectare, respectively. Red Chilli farming give a profit as the value of R/C to cast costs and total cost are 1,99 and 1,33. Factors of land area, seed price, SP36 fertilizer price, manure price, NPK fertilizer price, insecticide price, fungicide price and labor wages significantly affect to the profits of red chilli farming in Tulang Bawang Tengah Subdistric.Keywords : income, profit, and red chilli

NILAI TAMBAH KEDELAI MENJADI TAHU KUNING DAN FAKTOR-FAKTOR YANG MEMENGARUHINYA

<p><em>One of the home industries for processing soybeans into tofu is located in Kalisari Village, which has been producing since 1965</em><em>.</em><em> </em><em>T</em><em>his business serves as a diversification of the business that can increase </em><em>household </em><em>income</em><em>. </em><em>This study aims to 1) determine the added value of soybeans obtained by producers</em><em>,</em><em> 2) determine the distribution of </em><em>the </em><em>added value of soybeans</em><em> to yellow tofu, and </em><em>3) determine the factors that affect the added value of soybean </em><em>on yellow tofu </em><em>production. The research was conducted on tofu producer in the Sari Delai Group in Kalisari Village, Cilongok </em><em>Sub-district, </em><em>Banyumas Regency in June-July 2020. The</em><em>n </em><em>added value analysis</em><em> is carried out by</em><em> using the </em><em>method of </em><em>Hayami and </em><em>m</em><em>ultiple </em><em>l</em><em>inear </em><em>r</em><em>egression. The results showed that 1 kg of soybean raw material used for yellow tofu will provide an added value of Rp. 11,628.00. The distribution of added value for labor income was 13.38 percent, other input contributions by 18.54 percent and for profit 6</em><em>8%</em><em>. </em><em>T</em><em>he production capacity</em><em>, </em><em>raw materials</em><em>, labor,</em><em> output price and other input contributions</em><em> have significant </em><em>effect on the </em><em>added value of yellow tofu </em><em>production</em><em>. In contrast, </em><em>labor wage and raw material prices have no effect on the added value of </em><em>yellow tofu </em><em>production</em><em>.</em></p>

Market Power, Intertemporal Permits Trading, and Economic Efficiency

The banking and borrowing (BB) system has been developed gradually in the tradable permits market to perform a role as an environmental management tool. One question naturally arises as to how it will impact the behaviors of firms and the efficiency in presence of market power in the permits market. This paper considers market power in two cases: with and without the BB system. The equilibrium behaviors of the firms are identified in two cases. The findings show that the producing and discharging behaviors of firms depend on the permits price elasticity of output price without BB system, while they only depend on the growth rate of the output price in the BB system. Although both cases fail to obtain efficient solutions, the market with a BB system is capable of alleviating the inefficiency arising from market power compared with that without a BB system. The path of permits price satisfies the Hotelling rule in the case of the BB system, while it is closely related to the path of output price and output price elasticity of permits price in the case without the BB system.

The Capitalization Effect and Its Consequence of Agricultural Support Policies—Based on the Evidence of 800 Villages in China

The theoretical and empirical results of the capitalization effect of agricultural support policies on land rental price remain inconclusive. Based on the survey of Chinese Household Income Projects in 2007 and 2008, this paper adopts the panel data of 800 villages in 11 provinces in China to empirically analyze the impact of agricultural support policies on village-level land rental price. It shows that both output price support and agricultural subsidies have a significant positive effect on land rental price in the village. For each 1 CNY/kg increase in output price support, the land rental price in the village will rise by about 322.44 CNY/mu, while with an additional 1 CNY/mu increase in agricultural subsidies, it will increase by CNY 0.45. The stronger the social relationships in the village, the less area of land transfer for a fee and the lower the land rental price. For villages with weak social relationships or renting land to outsiders, output price support and agricultural subsidies can significantly increase the land rental price. Output price support and agricultural subsidies not only have a significant positive effect on the area of land transfer in the village but also an indirect negative effect on it by raising the price of regional land rent.

ANALISIS KEUNGGULAN KOMPARATIF DAN KOMPETITIF USAHATANI UBI KAYU DI KECAMATAN BLAMBANGAN PAGAR KABUPATEN LAMPUNG UTARA

This study aims to analyze the comparative and competitive advantages of two varieties of cassava, and determine the sensitivity due to changes in output prices, production volumes, and input prices to the comparative and competitive advantages of cassava farming in Blambangan Pagar Sub-district of North Lampung Regency. This research is a survey research involving 50 cassava farmers who were selected intentionally consisting of 25 farmers of Cassesart varieties and 25 farmers of Thailand varieties. To answer these objectives, the study uses PAM analysis (Policy Analysis Matrix). The results showed that Cassesart variety (UJ-5) cassava farming had a DRCR value of 0,15 and PCR of 0,46 so it was more competitive than Thailand variety (UJ-3) cassava farming which had a DRCR value 0f 0,18 and PCR of 0,57. If there is a decrease in the output price for Cassesart variety (UJ-5) cassava by 4,93% and Thailand variety (UJ-3) cassava by 5,32%, a decrease in production volume is 4,70%, and an increase in input prices (Urea fertilizer 21,32%, SP-36 fertilizer 34,40%, and NPK Phonska fertilizer 54,01%) due to the removal of fertilizer subsidies by the government, cassava farming is insensitive, therefore, despite changes in output prices, production volume, and the price of these inputs, cassava farming still has a competitive edge. Keywords : cassava, comparative, competitive, PAM

Analysis of the competitiveness of rice farming and its implications on Input-Output price policy scenario of rice in Jambi Province - Indonesia

The research objectives are: 1). to analyze the levels of private and social profitability of rice farming, 2). to analyze comparative advantage and competitive advantage rice farming, 3).to analyze the impact of input = output price policy on the competitiveness of rice farming. The study was conducted in rice production centers in the province of Jambi, named Kerinci, Sarolangun, Bungo and Tanjung Jabung Barat determined purposively. The sample size was 314 farmers with methods of Simple Random Sampling. Methods of data analysis used the Policy Analysis Matrix approach (PAM). The results showed that rice farming has high competitiveness. The increase in production input prices does not affect the declining competitiveness. The increase in the price of rice paddy resulted in more and more advantages.