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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

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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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Publisher Info
Article provided by Oxford University Press for the 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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  2. Blanco, Maria & Cortignani, Raffaele & Severini, Simone, 2008. "Evaluating Changes in Cropping Patterns due to the 2003 CAP Reform. An Ex-post Analysis of Different PMP Approaches Considering New Activities," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6674, European Association of Agricultural Economists. [Downloadable!]
  3. Arfini, F. & Donati, M. & Paris, Q., 2008. "Innovation in Estimation of Revenue and Cost Functions in PMP Using FADN Information at Regional Level," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44008, European Association of Agricultural Economists. [Downloadable!]
  4. Jansson, Torbjorn, 2005. "Two ways of estimating a transport model," 2005 Annual meeting, July 24-27, Providence, RI 19473, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Judez, L. & De Andres, R. & Ibanez, M. & De Miguel, J.M. & Miguel, J.L. & Urzainqui, E., 2008. "Impact Of The Cap Reform On The Spanish Agricultural Sector," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44830, European Association of Agricultural Economists. [Downloadable!]
  6. Buysse, J. & Van der Straeten, B. & Claeys, D. & Lauwers, L. & Marchand, F.L. & Van Huylenbroeck, G., 2008. "Flexible quota constraints in positive mathematical programming models," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6640, European Association of Agricultural Economists. [Downloadable!]
  7. Buysse, Jeroen & van Huylenbroeck, Guido, 2005. "Impact of Alternative Implementations of the Agenda 2000 Mid Term Review," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24589, European Association of Agricultural Economists. [Downloadable!]
  8. Bulgheroni, Claudia & Sali, Guido, 2008. "Pressure Factors Affecting Lombardy Agricultural System: The Environmental Consequences Of The Fischler Reform," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44827, European Association of Agricultural Economists. [Downloadable!]
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  10. Barkaoui, Ahmed, 2008. "Utilization Of Relative Land Allocation In The Calibration Of Agriculture Supply Models By The Pmp Approach," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44859, European Association of Agricultural Economists. [Downloadable!]
  11. Arfini, F. & Donati, M. & Grossi, L. & Paris, Q., 2008. "Revenue and Cost Functions in PMP: a Methodological Integration for a Territorial Analysis of CAP," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6636, European Association of Agricultural Economists. [Downloadable!]
  12. Polome, P. & Fernagut, B. & Harmignie, O. & de Frahan, B. Henry, 2005. "Multi-input Multi-output Farm-level Cost Function: A Comparison of Least Squares and Entropy Estimators," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24727, European Association of Agricultural Economists. [Downloadable!]
  13. Jansson, Torbjorn, 2005. "Two Ways of Estimating a Transport Model," Discussion Papers 18787, University of Bonn, Institute for Food and Resource Economics. [Downloadable!]
  14. Msangi, Siwa & Howitt, Richard E., 2006. "Estimating Disaggregate Production Functions: An Application to Northern Mexico," 2006 Annual meeting, July 23-26, Long Beach, CA 21080, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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