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The Potential Role of Multilevel Programming in Agricultural Economics

Author

Listed:
  • Wilfred Candler
  • Jose Fortuny-Amat
  • Bruce McCarl

Abstract

This paper discusses a new class of problem related to mathematical programming but with two separate decision makers in hierarchical relationship, each with his own objective function and control over distinct but interacting variables. The relationship of this problem to agricultural (energy and environmental) policy problems is developed, together with the relationship of this new problem structure to mathematical programming, game theory, control theory, and principal agent theory. Suggested computational approaches are reviewed, along with the solution to two illustrative examples of the use of the technique.

Suggested Citation

  • Wilfred Candler & Jose Fortuny-Amat & Bruce McCarl, 1981. "The Potential Role of Multilevel Programming in Agricultural Economics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(3), pages 521-531.
    • Handle: RePEc:oup:ajagec:v:63:y:1981:i:3:p:521-531.
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    File URL: http://hdl.handle.net/10.2307/1240543
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    Citations

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    Cited by:

    1. Kiryluk-Dryjska, Ewa & Beba, Patrycja, 2018. "Region-specific budgeting of rural development funds—An application study," Land Use Policy, Elsevier, vol. 77(C), pages 126-134.
    2. McCarl, Bruce A., 1992. "Mathematical Programming For Resource Policy Appraisal Under Multiple Objectives," Working Papers 11888, Environmental and Natural Resources Policy Training Project.
    3. A. Breiner & M. Avriel, 1999. "Two-Stage Approach for Quantitative Policy Analysis Using Bilevel Programming," Journal of Optimization Theory and Applications, Springer, vol. 100(1), pages 15-27, January.
    4. McCarl, Bruce A., 1986. "Innovations In Programming Techniques For Risk Analysis," Regional Research Projects > 1986: S-180 Annual Meeting, March 23-26, 1986, Tampa, Florida 271825, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    5. Dorward, Andrew & Morrison, Jamie & Robinson, Sherman & Tchale, Hardwick, 2004. "Differential Household Responses in a Poor Agricultural Economy: Implications for Agricultural Policy Analysis," Conference papers 331282, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Lopez, Rigoberto A. & Spreen, Thomas H., 1984. "The Impact of Alternative Payment Arrangements on the Performance of Florida Sugarcane Cooperatives," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(2), pages 99-108, December.
    7. W-Y Huang & N D Uri, 1990. "An Analytical Framework for Assessing the Benefits and Costs of Policies Related to Protecting Groundwater Quality," Environment and Planning A, , vol. 22(11), pages 1469-1486, November.
    8. Alexander, Robert R. & English, Burton C., 1992. "Modeling Soil Erosion Control Policy: A Multi-Level Dynamic Analysis," 1992 Annual Meeting, August 9-12, Baltimore, Maryland 271375, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Laborte, Alice G. & Van Ittersum, Martin K. & Van den Berg, Marrit M., 2007. "Multi-scale analysis of agricultural development: A modelling approach for Ilocos Norte, Philippines," Agricultural Systems, Elsevier, vol. 94(3), pages 862-873, June.
    10. Brandao, Elizabeth Santos & McCarl, Bruce A. & Schuh, G. Edward, 1984. "Predicting The Impact Of New Cropping Practices Upon Subsistence Farming: A Farm Level Analysis In Brazil," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(2), pages 1-13, December.

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