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PRICE‐LINKED FARM AND SPATIAL EQUILIBRIUM MODELS
Author(s) -
Batterham Robert L.,
MacAulay T. Gordon
Publication year - 1994
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1994.tb00537.x
Subject(s) - dual (grammatical number) , general equilibrium theory , economics , partial equilibrium , econometrics , computer science , mathematical optimization , microeconomics , mathematics , art , literature
The integration of detailed farm supply models with the basic spatial equilibrium model, is outlined. The direct linking of farm linear programming models with the spatial equilibrium model is achieved so that both prices and quantities are endogenous. Both the farm model and the spatial equilibrium model must be specified in primal‐dual form to make the linkages. Limited details of the use of such a model in a study of a segment of the grain handling system in New South Wales are presented along with conclusions relating to the pricing of grain handling services.