ABSTRAK
The determination of the price of paddy is under the control of the Government and the influence of economic and non-economic forces. The price determination of paddy is connected with the general (average) price level. The general (average) price level influences the price of paddy as well as the price of consumption goods bought by paddy farmers. Therefore are influenced also income, cost of living and household welfare of paddy farmers. The increase of general (average) price level tends to increase the price of paddy. If the general (average) price level increases more than the increase of the price of paddy sold by paddy farmers and the price of consumption goods bought by paddy farmers, the real income of paddy farmers tends to decrease, the cost of living tends to increase and the household welfare tends to decrease. By taking into consideration the relationship between the general (average) price level, the price of paddy, the price of consumption goods, the real income and the cost of living, the household welfare tends to change. Because of the rational expectation of paddy farmers to general (average) price level change is lower than of the consumers, then the effect of change in price of paddy is smaller compared with the effect of change in price of consumption goods to the household welfare of paddy farmers. Therefore, to increase the household welfare of paddy farmers, it is needed not to aim at the change in price of paddy produced by paddy farmers, but at the income of paddy farmers or with other words aiming at the change of cost of living of the household of paddy farmers. The more subsistence the farmer is, the less elastic is his marketable supply. If the farmer becomes more commercialized or with other words the marketing output ratio is increased, the elasticity of marketable surplus increases. By taking into consideration the relationship between the general (average) price level, the price of paddy, the price of consumption goods bought by the paddy farmers as consumer, the real income and the cost of living and the household welfare of paddy farmers, then the success of paddy production depend also on the policies mix of the Government on the demand side and the supply side of macroeconomics, which imply also non-economic forces. |
T7262-Sunario.pdf :: Unduh