IDEAS home Printed from https://ideas.repec.org/p/ags/iaaeo1/190948.html
   My bibliography  Save this paper

Application Of Mathematical Programming Models Simulating Competitive Market Equilibrium For Agricultural Policy And Planning Analysis

Author

Listed:
  • Kunkel, David E.
  • Gonzales, Leonardo A.
  • Hiwatig, Mario H.

Abstract

In this paper, recent theoretical advances of modeling are amplified and applied to a sample linear programming problem to demonstrate its usefulness for policy analysis. Policymakers and planners in agriculture are looking for analyses that will aid them in appraising what future levels of production may be expected at alternative price levels. This requires knowledge of what changes result from different supply-demand balances due to possible input scarcities, changes in productivity under alternative technologies and changes in consumer's preferences. The objectives of this paper are to (1) restate the theoretical underpinning that are useful for this analysis by specifying the complete model; (2) to demonstrate how the model can be solved using linear programming techniques; and, (3) demonstrate how the model can be used in policy analysis.

Suggested Citation

  • Kunkel, David E. & Gonzales, Leonardo A. & Hiwatig, Mario H., 1977. "Application Of Mathematical Programming Models Simulating Competitive Market Equilibrium For Agricultural Policy And Planning Analysis," 1977 Occasional Paper Series No. 1 190948, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaaeo1:190948
    DOI: 10.22004/ag.econ.190948
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/190948/files/agecon-occpapers-1977-002.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.190948?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alvin C. Egbert & Hyung M. Kim, 1975. "Analysis of Aggregation Errors in Linear Programming Planning Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(2), pages 292-301.
    2. Currie, John Martin & Murphy, John A & Schmitz, Andrew, 1971. "The Concept of Economic Surplus and its Use in Economic Analysis," Economic Journal, Royal Economic Society, vol. 81(324), pages 741-799, December.
    3. Earl O. Heady & Alvin C. Egbert, 1959. "Programming Regional Adjustments in Grain Production to Eliminate Surpluses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 41(4), pages 718-733.
    4. Jose Encarnacion Jr., 1976. "On Predicting Subsectoral Outputs and Prices via an Optimizing Model," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 13(1), pages 89-92, June.
    5. Kunkel, David E., 1974. "A Programming Model of Philippine Agriculture," Miscellaneous Publications 334717, United States Department of Agriculture, Economic Research Service.
    6. T. Takayama & G. G. Judge, 1964. "An Interregional Activity Analysis Model for the Agricultural Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 46(2), pages 349-365.
    7. Dan Yaron & Yakir Plessner & Earl O. Heady, 1965. "Competitive Equilibrium-Application Of Mathematical Programming," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 13(2), pages 65-79, July.
    8. Harberger, Arnold C, 1971. "Three Basic Postulates for Applied Welfare Economics: An Interpretive Essay," Journal of Economic Literature, American Economic Association, vol. 9(3), pages 785-797, September.
    9. Vernon L. Smith, 1963. "Minimization of Economic Rent in Spatial Price Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 30(1), pages 24-31.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boggess, William Glenn, 1979. "Development and application of an interregional separable programming model of United States agriculture in 1985," ISU General Staff Papers 197901010800008192, Iowa State University, Department of Economics.
    2. Jeffrey T. LaFrance, 1990. "Incomplete Demand Systems And Semilogarithmic Demand Models," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 34(2), pages 118-131, August.
    3. Weindlmaier, H., 1977. "Zur wohlfahrtsökonomischen Interpretation der Ergebnisse räumlicher Gleichgewichtsmodelle," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 14.
    4. Walter Hettich, 1976. "Distribution in Benefit-Cost Analysis: A Review of Theoretical Issues," Public Finance Review, , vol. 4(2), pages 123-150, April.
    5. Randall, Alan, 1982. "Economic Surplus Concepts and Their Use in Benefit Cost Analysis," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(02), pages 1-29, August.
    6. Louis Mahé, 1977. "Le coût des fluctuations cycliques agricoles pour la collectivité," Revue Économique, Programme National Persée, vol. 28(6), pages 974-1004.
    7. Taylor, C. Robert & Lacewell, Ronald D., 1977. "Boll Weevil Control Strategies: Regional Benefits And Costs," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 9(1), pages 1-7, July.
    8. Barnett, William A. & Erwin Diewert, W. & Zellner, Arnold, 2011. "Introduction to measurement with theory," Journal of Econometrics, Elsevier, vol. 161(1), pages 1-5, March.
    9. Graham,Errol George & Tchale,Hardwick & Ndione,Mamadou, 2020. "An Optimal Rice Policy for Sierra Leone : Balancing Consumer and Producer Welfare," Policy Research Working Paper Series 9369, The World Bank.
    10. Evan F. Koenig, 1985. "Indirect Methods for Regulating Externalities Under Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(2), pages 479-493.
    11. Russell Pittman, 2007. "Consumer Surplus as the Appropriate Standard for Antitrust Enforcement," EAG Discussions Papers 200709, Department of Justice, Antitrust Division.
    12. Kooten, G. Cornelis van, 2013. "Modeling Forest Trade in Logs and Lumber: Qualitative and Quantitative Analysis," Working Papers 149182, University of Victoria, Resource Economics and Policy.
    13. Stephen Martin, 2019. "The Potential Compensation Principle and Constant Marginal Utility of Income," The Japanese Economic Review, Japanese Economic Association, vol. 70(3), pages 383-393, September.
    14. Richard Pomfret, 1978. "The economic consequences for Israel of free trade in manufactured goods with the EEC," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 114(3), pages 526-539, September.
    15. Udo Ebert, 1986. "Equity and distribution in cost-benefit analysis," Journal of Economics, Springer, vol. 5(1), pages 67-78, December.
    16. Kevin Boyle & Sapna Kaul & Ali Hashemi & Xiaoshu Li, 2015. "Applicability of benefit transfers for evaluation of homeland security counterterrorism measures," Chapters, in: Carol Mansfield & V. K. Smith (ed.), Benefit–Cost Analyses for Security Policies, chapter 10, pages 225-253, Edward Elgar Publishing.
    17. Heckman, James, 2001. "Accounting for Heterogeneity, Diversity and General Equilibrium in Evaluating Social Programmes," Economic Journal, Royal Economic Society, vol. 111(475), pages 654-699, November.
    18. Javelosa, Josyline C. & Schmitz, Andrew, 2006. "Costs and Benefits of a WTO Dispute: Philippine Bananas and the Australian Market," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 7(1), pages 1-26.
    19. Kym Anderson & Johan Swinnen, 2008. "Distortions to Agricultural Incentives in Europe's Transition Economies," World Bank Publications - Books, The World Bank Group, number 6502.
    20. Martin, Will, 2021. "Tools for measuring the full impacts of agricultural interventions," IFPRI-MCC technical papers 2, International Food Policy Research Institute (IFPRI).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaaeo1:190948. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.