Estimation of the profit function of Trans log and the elasticity of input demand in rice farming in Jambi province
Department of Agribusiness, Faculty of Agriculture, Jambi University, Jambi, Indonesia.
Research Article
GSC Advanced Research and Reviews, 2022, 13(01), 169–175.
Article DOI: 10.30574/gscarr.2022.13.1.0266
Publication history:
Received on 06 September 2022; revised on 12 October 2022; accepted on 15 October 2022
Abstract:
This study aims to analyze the development of input and output prices, the translog profit function, and the elasticity of demand for lowland rice farming inputs in Jambi Province. The function model used is the Transcendental Logarithmic (Translog) profit function. The study results show that
· The development of input prices has increased significantly every year.
· The production input factors that affect the profitability of lowland rice farming are the price of seeds, TSP fertilizer, and other chemical fertilizers (KML). Other production factors such as urea fertilizer prices, pesticide prices, labor wages, and land rental costs are determinant factors.
· The value of the elasticity of demand for inputs to their prices is elastic.
All cross-price elasticity of demand is complementary and elastic. The value of the elasticity of input demand which is influenced by the price of rice shows a positive and elastic value. From the results of the study, it is expected that there will be capital assistance for farmers so that farmers can allocate optimal use of inputs.
Keywords:
Elasticity; Trans log Profit Function; Demand; Paddy Rice
Full text article in PDF:
Copyright information:
Copyright © 2022 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0
