Rice price policies in Indonesia: a computable general equilibrium (CGE) analysis

This paper presents an agriculture sector focused Computable General Equilibrium (AG-CGE) model for analyzing the economy-wide impacts of changes in technology, protection, and market structure on resource allocation, production, and trade in Indonesia. The paper incorporates a specification of the...

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Autores principales: Robinson, Sherman, El-Said, Moataz, San, Nu Nu, Suryana, Achmad, Swastika, Dewa, Bahri, Sjaiful
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 1997
Materias:
Acceso en línea:https://hdl.handle.net/10568/161178
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author Robinson, Sherman
El-Said, Moataz
San, Nu Nu
Suryana, Achmad
Swastika, Dewa
Bahri, Sjaiful
author_browse Bahri, Sjaiful
El-Said, Moataz
Robinson, Sherman
San, Nu Nu
Suryana, Achmad
Swastika, Dewa
author_facet Robinson, Sherman
El-Said, Moataz
San, Nu Nu
Suryana, Achmad
Swastika, Dewa
Bahri, Sjaiful
author_sort Robinson, Sherman
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper presents an agriculture sector focused Computable General Equilibrium (AG-CGE) model for analyzing the economy-wide impacts of changes in technology, protection, and market structure on resource allocation, production, and trade in Indonesia. The paper incorporates a specification of the rice market and models the government price-support, stocking, and trade policies for rice using a mixed complementarity approach. This approach allows the specification of inequalities and changes in policy regime as prices and/or stocks move within specified bands. The model is used to examine the impact on the Indonesian economy of changes in rice yields given different assumptions about the operations of Bulog (National Logistic Agency). The general equilibrium approach captures and quantifies the effects of the price support policies on resource allocation, trade, relative prices, and the government budget. An important result is that there is inefficient allocation of resources within the agriculture sector and the rest of the economy if Bulog operates to maintain the rice price when there are significant increases in rice productivity. Instead of releasing resources to other high-value agriculture uses and non-agriculture uses, the price support scheme attracts more resources into rice production. In addition, the price support program is costly and strains the government accounts, even if the administrative costs of operating the program are ignored.
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publishDate 1997
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spelling CGSpace1611782025-11-06T05:15:58Z Rice price policies in Indonesia: a computable general equilibrium (CGE) analysis Robinson, Sherman El-Said, Moataz San, Nu Nu Suryana, Achmad Swastika, Dewa Bahri, Sjaiful rice yields price regulation agricultural resources computable general equilibrium models This paper presents an agriculture sector focused Computable General Equilibrium (AG-CGE) model for analyzing the economy-wide impacts of changes in technology, protection, and market structure on resource allocation, production, and trade in Indonesia. The paper incorporates a specification of the rice market and models the government price-support, stocking, and trade policies for rice using a mixed complementarity approach. This approach allows the specification of inequalities and changes in policy regime as prices and/or stocks move within specified bands. The model is used to examine the impact on the Indonesian economy of changes in rice yields given different assumptions about the operations of Bulog (National Logistic Agency). The general equilibrium approach captures and quantifies the effects of the price support policies on resource allocation, trade, relative prices, and the government budget. An important result is that there is inefficient allocation of resources within the agriculture sector and the rest of the economy if Bulog operates to maintain the rice price when there are significant increases in rice productivity. Instead of releasing resources to other high-value agriculture uses and non-agriculture uses, the price support scheme attracts more resources into rice production. In addition, the price support program is costly and strains the government accounts, even if the administrative costs of operating the program are ignored. 1997 2024-11-21T09:53:58Z 2024-11-21T09:53:58Z Working Paper https://hdl.handle.net/10568/161178 en Open Access application/pdf International Food Policy Research Institute Robinson, Sherman; El-Said, Moataz; San, Nu Nu; Suryana, Achmad; Swastika, Dewa; Bahri, Sjaiful. 1997. Rice price policies in Indonesia;a computable general equilibrium (CGE) analysis. TMD Discussion Paper 19. https://hdl.handle.net/10568/161178
spellingShingle rice
yields
price regulation
agricultural resources
computable general equilibrium models
Robinson, Sherman
El-Said, Moataz
San, Nu Nu
Suryana, Achmad
Swastika, Dewa
Bahri, Sjaiful
Rice price policies in Indonesia: a computable general equilibrium (CGE) analysis
title Rice price policies in Indonesia: a computable general equilibrium (CGE) analysis
title_full Rice price policies in Indonesia: a computable general equilibrium (CGE) analysis
title_fullStr Rice price policies in Indonesia: a computable general equilibrium (CGE) analysis
title_full_unstemmed Rice price policies in Indonesia: a computable general equilibrium (CGE) analysis
title_short Rice price policies in Indonesia: a computable general equilibrium (CGE) analysis
title_sort rice price policies in indonesia a computable general equilibrium cge analysis
topic rice
yields
price regulation
agricultural resources
computable general equilibrium models
url https://hdl.handle.net/10568/161178
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