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AGSEM: An Agriculture Sector Equilibrium Model *Description *Example Analyses *Data

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  • Miller, Thomas A.
  • Washburn, Monte C.

Abstract

Objective of the Study: In 1974, Ericksen (5) observed that the analyses of production capacity involved four basic factors or types of information: (1) the supply relationship in both a positive and a normative economic sense, (2) demand of both the domestic and export sectors, (3) the resource base available to U.S. agriculture and (4) the nature of technological advance in agriculture (the productivity of resources in agriculture). AGSEM provides the capability to evaluate the relationships of these four factors within the U.S. agriculture using a highly aggregate mathematical programming model. The model is designed to trace the general impacts of exogenous factors on the performance of the U.S. food and fiber sector. It is not designed to make statistically precise estimates, but rather to identify the set of impacts, indicate their directions, and provide a preliminary estimate of their magnitude. The basic procedure is to identify the nature of the exogenous factor from sources outside the project and include it in the model in the form of revised coefficients, new production processes or restrictions. The methodology thus provides capability for (1) determining the relative importance and possible impacts of a multitude of potential issues, (2) assisting in the choice of particular issues that warrant more in-depth analyses and (3) integrating the results of other research projects that are in the specific areas of supply, demand, resources and technology.

Suggested Citation

  • Miller, Thomas A. & Washburn, Monte C., 1978. "AGSEM: An Agriculture Sector Equilibrium Model *Description *Example Analyses *Data," Economics Statistics and Cooperative Services (ESCS) Reports 329885, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerscs:329885
    DOI: 10.22004/ag.econ.329885
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    References listed on IDEAS

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    1. Adams, Richard M. & McKusick, Robert B., 1977. "Regional Resource Use And Commodity Supply Response," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 29(4), pages 1-10, October.
    2. Mann, Jitendar S. & St. George, George E., 1978. "Estimates of Elasticities for Food Demand in the United States," Technical Bulletins 157867, United States Department of Agriculture, Economic Research Service.
    3. John H. Duloy & Roger D. Norton, 1975. "Prices and Incomes in Linear Programming Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(4), pages 591-600.
    4. Tweeten, Luther G. & Tyner, Fred H., 1966. "The Utility Concept of Net Social Cost--A Criterion for Public Policy," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 18(2), pages 1-10, April.
    5. Paul R. Johnson, 1977. "The Elasticity of Foreign Demand for U.S. Agricultural Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(4), pages 735-736.
    6. Ray, Daryll E. & Mariak, Theo F., 1975. "Explanation And Use Of An Agricultural Policy Simulator(Polysim)," 1975 Annual Meeting, August 10-13, Columbus, Ohio 284096, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Mann, Jitendar S., 1977. "Techniques To Measure Social Benefits And Costs In Agriculture: A Survey," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 29(4), pages 1-12, October.
    8. Economics, Statistics, and Cooperatives Service, 1978. "Analysis of American Agricultural Movement Proposal," Economics Statistics and Cooperative Services (ESCS) Reports 320801, United States Department of Agriculture, Economic Research Service.
    9. George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936, December.
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