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Utilization Of Relative Land Allocation In The Calibration Of Agriculture Supply Models By The Pmp Approach

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  • Barkaoui, Ahmed

Abstract

This poster proposes a new procedure in agriculture supply modelling by the positive mathematical programming (PMP) approach. This approach is now widely used in last CAP reform simulations. However, simulation behaviour and performances of PMP procedures depend of the way parameters of the non linear total cost function in the objective function are recovered. We propose a new specification of the total cost function where land is explicitly considered as a fixed input. By using relative parts of land of the different activities this new PMP procedure permits to better capture production behaviour when economic conditions. It also permits to avoid a drawback of the early procedures concerning marginal activities

Suggested Citation

  • Barkaoui, Ahmed, 2008. "Utilization Of Relative Land Allocation In The Calibration Of Agriculture Supply Models By The Pmp Approach," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44859, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa109:44859
    DOI: 10.22004/ag.econ.44859
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    References listed on IDEAS

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    1. Thomas Heckelei & Hendrik Wolff, 2003. "Estimation of constrained optimisation models for agricultural supply analysis based on generalised maximum entropy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(1), pages 27-50, March.
    2. Gocht, Alexander, 2005. "Assessment of Simulation Behavior of Different Mathematical Programming Approaches," 89th Seminar, February 2-5, 2005, Parma, Italy 232598, European Association of Agricultural Economists.
    3. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
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