Equilibrium Displacement Mathematical Programming Models: Methodology and a Model of the U.S. Agricultural Sector
- by David H. Harrington and Robert Dubman
- 2/11/2008
Overview
The objective of this research is to extend and generalize the equilibrium displacement methodology by combining it with mathematical programming methods and existing knowledge of farm sector relationships to develop sectoral adjustment models that can operate in pure competition, monopoly/monopsony, or mixed-competition. A model of the U.S. agricultural sector at the national aggregate level is presented to illustrate the methods. An appendix contains a user's manual describing the operation of the model. Further appendices contain documentation of the structure of the spreadsheets, the programming tableau, and the SAS solution program.
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Entire report
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Abstract, Contents
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Summary
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Introduction
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EDMP Methodology
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Modeling the Supply Side
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Modeling the Demand Side
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Modeling Agricultural Policies and Programs
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Model Calibration
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What Do Gradients Mean?
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Structure of the Model
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Solving the Model
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Supply Parameters
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Implicit Acreage- and Supply-Response Elasticities
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Demand Parameters
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Government Program Parameters
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Post-Optimal Calculations of Performance Variables
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References
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Appendix I: User's Manual
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Appendix II: The SAS Excel Link Program
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Appendix III: Model Spreadsheets
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