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A CALIBRATION METHOD FOR AGRICULTURAL ECONOMIC PRODUCTION MODELS
Author(s) -
Howitt Richard E.
Publication year - 1995
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1995.tb00762.x
Subject(s) - substitution (logic) , production (economics) , calibration , economics , econometrics , agriculture , function (biology) , economic model , production model , agricultural productivity , linear programming , computer science , microeconomics , mathematics , statistics , algorithm , ecology , evolutionary biology , biology , programming language
A method for calibrating agricultural production models is presented. The data requirements are those for a linear programming model with the addition of elasticities of substitution. Using these data, production models with a CES production function can be simply and automatically calibrated using small computers. The resulting models are shown to satisfy the standard microeconomic conditions. When used for analysis of policy changes, the CES models are able to respond smoothly to changes in prices or constraints. Prior estimates of elasticities of substitution, supply or demand can be incorporated in the models.