Rice occupies a significant position in the Korean economy. It is not only the primary food of the people but also the main source of farm incomes.
Since 1960 the acreage of rice has remained fairly constant, but the yield per acre of rice has varied greatly from year to year.
In this thesis, the production and consumption structure for rice in Korea is analyzed and a dynamic model for computer simulation is developed with the following assumptions.
1) The production of rice is dependent on only the price received by farmers.
2) The consumption of rice per capita is dependent on only the wholesale price and the disposable income per capita.
3) The price received by farmers is dependent on the government policy.
The results are as follows :
1) The production response to price change is a summation of two components- the acreage response and the yield response.
2) The consumption response to price change is very small, i.e. it is very stable.
3) Korea should import rice from abroad until 1982.
