| Summary: | This paper analyzes dynamic food crop supply response in Indonesia. The effects of technology, prices, and investments on output growth for rice, corn, soybean, and cassava are examined. The analysis generates crop-wise area, yield, and input demand parameters suitable for the evaluation of price and investment policies, and shows the large impact of public investment in agricultural research, extension, and irrigation on long-run output growth in Indonesia. Elimination of the fertilizer subsidy and reinvestment of the resulting fiscal savings in research, extension and irrigation would produce large benefits.
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