ABSTRACT: The ultimate impact of economic changes, government policies and programs on consumption are determined by responses of households. The predicted reaction of households to intervention should be a crucial factor in assessing the merits of various policy alternatives. The results of thepresent work hopefully enrich our understanding of farm household rice demand behavior. Rice consumption needs special mention, since the commodity is strategic and is highly preferred in basic diet.
The study used AIDS (Almost Ideal Demand System) model to evaluate the rice demand behaviorof rice farm households. In this system approach, econometrics and judgment are employed inobtaining parameter estimates that meet the restriction which, in part, are of a theoreticalnature. Data used in this study was data at household level that has been collected through Patanas (National Farmers Panel). The estimated results clearly showed that rice demand wasprice inelastic. The estimated income elasticity gave significant results statistically. Income elasticity for rice was also less than unity. In general, estimated elasticities were quite plausible
Keywords: Demand, rice farm, elasticity
Penulis: Harianto dan Dwi Astuti Bertha Susila
Kode Jurnal: jppertaniandd090131

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