BANDUNG (The Influence of Potato’s Price and Production Risk on Farm Household Production Behavior in Pangalengan Bandung)
Abstract: The farm households
face different risk on decision-making of resource allocation, especially
production and price risk. The objectives of this paper are: (1) to analyze the
effects of input allocation on the production risk, and (2) to analyze the
influence of product price and production risk, incorporating the household
economic behavior, especially on decision-making in resource allocation.
Generalized autoregressive conditional heteroskedasticity (GARCH) model was
used to analyze the production variance. The estimation of production function
showed that the current production variance was influenced by the production
variance of the previous period. Pesticide had a risk-reducing effect on the
variance of production. On the contrary, land and nitrogen fertilizer had
risk-inducing effect on the variance of production.
Keywords: production risk,
price risk, and GARCH model
Penulis: Anna Fariyanti,
Kuntjoro Kuntjoro, Sri Hartoyo, Arief Daryanto
Kode Jurnal: jppertaniandd070045
