A heterogeneous-agent model with district-level constraints: an application to livestock development in Gansu, China
AbstractThis paper develops a heterogeneous-agent model to assess the impacts of removing lucerne growing subsidies, increasing livestock numbers and including district-level equilibrium conditions on optimal farm plans in the Qingyang district of Gansu Province, China. The model is a five-year dynamic linear program that solves across 96 farm households whilst incorporating district-level constraints. The approach used allows us to observe seasonal variations in incomes, infer the distribution of a policy shock among households and highlight trade patterns at the district level. The results suggest that without lucerne growing subsidies the total area of lucerne grown by all modelled households falls by 18%. Increasing livestock numbers by 25% reduces net household incomes by 17% as changes to labour allocations reduce off-farm employment opportunities. When external trade in forages is included in the model, total livestock numbers held by all 96 households rise from 502 to 838, this highlights the benefits of integrated feed markets. Shadow prices for crop production rise when livestock numbers increase, implying that benefits exist to improving crop yields.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia with number 100573.
Date of creation: 2011
Date of revision:
Contact details of provider:
Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
Heterogeneous-agent model; district-level constraints; livestock; China.; Farm Management;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.