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Modeling Agricultural Supply Response Using Mathematical Programming and Crop Mixes

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  • Xiaoguang Chen
  • Hayri �nal

Abstract

Mathematical programming models are widely used in agricultural sector analysis. However, the lack of micro-level data, as well as computational requirements, necessitate the aggregation of individual producers into representative units when working at the sectoral level. This usually leads to unrealistic extreme specialization in supply responses. In 1982, McCarl introduced the "historical crop mixes" approach to avoid extreme specialization. We extend this approach by generating additional synthetic crop mixes using supply response elasticities and systematically varied commodity prices. In addition to avoiding extreme specialization, this approach provides flexibility when future supply responses can be vastly different from past responses. An application to U.S. biofuel policy analysis is presented. Copyright 2012, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 94 (2012)
Issue (Month): 3 ()
Pages: 674-686

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Handle: RePEc:oup:ajagec:v:94:y:2012:i:3:p:674-686

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Cited by:
  1. Moon, Jin-Young & Apland, Jeffrey & Folle, Solomon & Mulla, David J., 2012. "Environmental Impacts of Cellulosic Feedstock Production: A Case Study of a Cornbelt Aquifer," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125016, Agricultural and Applied Economics Association.
  2. Weiwei, Wang & Khanna, Madhu & Dwivedi, Puneet, 2013. "Optimal Mix of Feedstock for Biofuels: Implications for Land Use and GHG Emissions," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150736, Agricultural and Applied Economics Association.
  3. van Kooten, G. Cornelis & Johnston, Craig, 2014. "Global impacts of Russian log export restrictions and the Canada–U.S. lumber dispute: Modeling trade in logs and lumber," Forest Policy and Economics, Elsevier, vol. 39(C), pages 54-66.
  4. Kahil, Mohamed Taher & Albiac, José, 2013. "Greenhouse gases mitigation policies in the agriculture of Aragon, Spain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 1, April.
  5. G. Cornelis van Kooten, 2013. "Modeling Forest Trade in Logs and Lumber: Qualitative and Quantitative Analysis," Working Papers 2013-04, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.

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