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A Calibration Method For Agricultural Economic Production Models

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  • Richard E. Howitt

Abstract

A method for calibrating agricultural production models is presented. The data requirements are those for a linear programming model with the addition of elasticities of substitution. Using these data, production models with a CES production function can be simply and automatically calibrated using small computers. The resulting models are shown to satisfy the standard microeconomic conditions. When used for analysis of policy changes, the CES models are able to respond smoothly to changes in prices or constraints. Prior estimates of elasticities of substitution, supply or demand can be incorporated in the models.

Suggested Citation

  • Richard E. Howitt, 1995. "A Calibration Method For Agricultural Economic Production Models," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(2), pages 147-159, May.
    • Handle: RePEc:bla:jageco:v:46:y:1995:i:2:p:147-159
    DOI: 10.1111/j.1477-9552.1995.tb00762.x
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    References listed on IDEAS

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    1. John M. Antle, 1983. "Sequential Decision Making in Production Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 282-290.
    2. Hoover, Kevin D, 1995. "Facts and Artifacts: Calibration and the Empirical Assessment of Real-Business-Cycle Models," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 24-44, January.
    3. Antle, John M., 1983. "Sequential Decision Making in Production Models," 1983 Annual Meeting, July 31-August 3, West Lafayette, Indiana 279107, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Jock R. Anderson, 1974. "Sparse Data, Climatic Variability, and Yield Uncertainty in Response Analysis: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 647-647.
    5. Horner, G.L. & Corman, J. & Howitt, R.E. & Carter, C.A. & MacGregor, R.J., 1992. "The Canadian Regional Agriculture Model Structure, Operation and Development," Papers 1-92, Gouvernement du Canada - Agriculture Canada.
    6. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    7. K. Sato, 1967. "A Two-Level Constant-Elasticity-of-Substitution Production Function," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(2), pages 201-218.
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