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Estimation of constrained optimisation models for agricultural supply analysis based on generalised maximum entropy

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  • Thomas Heckelei
  • Hendrik Wolff

Abstract

The paper introduces a general methodological approach for the estimation of constrained optimisation models in agricultural supply analysis. It is based on optimality conditions of the desired programming model and shows a conceptual advantage compared with Positive Mathematical Programming in the context of well-posed estimation problems. Moreover, it closes the empirical and methodological gap between programming models and duality-based models with explicit allocation of fixed factors. Monte Carlo simulations are performed with a maximum entropy estimator to evaluate the functionality of the approach as well as the impact of empirically relevant prior information with small samples. Copyright 2003, Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 30 (2003)
Issue (Month): 1 (March)
Pages: 27-50

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Handle: RePEc:oup:erevae:v:30:y:2003:i:1:p:27-50

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