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BBM: Harga, Threshold, dan Subsidi

Author

Listed:
  • Yun Hariadi

    (Dept. Dynamical System Modeling, Bandung Fe Institute)

Abstract

People suffered the hike oil price much more than what stated by the government. The adaptability of the oil price decreased since the in-efficient distribution line and the slow of the economical growth. By assuming the production line as iterative process in Liapunov’s exponential model we can see the level of price difference among the people. The changing of oil price in international market is assumed by the geometric Brownian motion (GBM). By comparing the price-adaptability of the people including the subsidy factor, we can show when for the first time the international price beyond the priceadaptability of the people. In the end it shows how to decrease, not-change or even increase the oil subsidy by Markov chain model approach.

Suggested Citation

  • Yun Hariadi, 2003. "BBM: Harga, Threshold, dan Subsidi," Departmental Working Papers wpc2003, Bandung Fe Institute.
    • Handle: RePEc:bfe:wpsbfi:wpc2003
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