Abstract
This work aims to measure the cost of supporting both the product price support policy and also support input prices, then the comparison between the two policies for their preference between them. The problem of study that the state when implementing the two policies bear sums from the public treasury. Analysis based on the collection of data from the sample of study, a beef and fish meat contains time series on prices, production and consumption depends on the style of mathematics to get the results. The results arrived that the state gets revenue through support product price policy, but the returns were not in the producers have been negatively affected consumer prices up meat. On the other hand the state bore the costs by supporting input prices in order to be provided to producers. Therefore we prefer the input support policy for the economic and productivity. The study recommends that support the agricultural sector policy planning and rehabilitation support commodity price policy.
Highlights
Many countries resort to determine the prices of agricultural products, especially grain and meat
The State bears the difference between the purchase and selling price of the product price when you ask selling price of the purchase price, we get the amount of the cost of support per unit of output and we can get on the amount of the cost of the support the college by multiplying the amount of consumption in the amount of the cost of support per unit of output
The State bears the difference between the purchase price and the selling price of the product in question and when you ask selling price of the purchase price we get the amount of the cost of support per unit of output and we can get on the amount of the cost of the total support the by multiplying the amount of consumption in the amount of the cost of support per unit of the commodity(Bayaty, 2007)
Summary
Many countries resort to determine the prices of agricultural products, especially grain and meat. State intervention is through either remunerative price to the final output of goods in the sense support producer prices, as well as supporting consumer prices, especially meat, which is characterized by high price in local markets. In both cases, whether to support the resulting price of the product or the consumer, the State bears the costs of this policy and the burden of its treasury, since you are buying meat from local producers at prices supposed to be rewarding for them to continue in the production process, and sells it to consumers at a price commensurate with the level of their income (the price of the state) The price is supposed to be supported. In this research will be analysing the results of the policies of the product price support and input subsidies for trade-offs between the two policies in economic terms costs
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