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A Method For Including In Pmp Models Activities Non-Existent In The Baseline Situation

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  • Judez, Lucinio
  • de Andres, Rosario
  • Ibanez, M.
  • Urzainqui, Elvira

Abstract

When working with positive mathematical programming (PMP) models it is generally admitted that it is not possible to consider in the modeled unit activities that are not present in the baseline situation of the unit. This constitutes a considerable drawback for traditional PMP techniques which cannot be applied in specific cases, in particular to the study of the impact of new agri-environmental programs that subsidize crops grown with technologies different to those applied in the baseline situation. This paper presents a method for dealing with these cases, which can be easily implemented as an extension of the traditional calibration techniques of PMP. The method is applied to a specific problem, using modified calibration expressions derived from the necessary Khun-Tucker conditions, assuming increasing marginal costs. The analysis of the results and their comparison with those obtained using a linear programming model permits a first evaluation of this methodological proposal.

Suggested Citation

  • Judez, Lucinio & de Andres, Rosario & Ibanez, M. & Urzainqui, Elvira, 2008. "A Method For Including In Pmp Models Activities Non-Existent In The Baseline Situation," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44243, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44243
    DOI: 10.22004/ag.econ.44243
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    References listed on IDEAS

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    1. Ottmar Röhm & Stephan Dabbert, 2003. "Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 254-265.
    2. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
    3. Bruno Henry Frahan & Jeroen Buysse & Philippe Polomé & Bruno Fernagut & Olivier Harmignie & Ludwig Lauwers & Guido Huylenbroeck & Jef Meensel, 2007. "Positive Mathematical Programming for Agricultural and Environmental Policy Analysis: Review and Practice," International Series in Operations Research & Management Science, in: Andres Weintraub & Carlos Romero & Trond Bjørndal & Rafael Epstein & Jaime Miranda (ed.), Handbook Of Operations Research In Natural Resources, chapter 0, pages 129-154, Springer.
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    Cited by:

    1. Hansen, Kristiana & Frahan, Bruno Henry de, 2011. "Evaluation of Agro-Environmental Policy through a Calibrated Simulation Farm Model," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114577, European Association of Agricultural Economists.
    2. He, Lixia & Horbulyk, Theodore M. & Ali, Md. Kamar & Le Roy, Danny G. & Klein, K.K., 2012. "Proportional water sharing vs. seniority-based allocation in the Bow River basin of Southern Alberta," Agricultural Water Management, Elsevier, vol. 104(C), pages 21-31.
    3. Fragoso, R. & Marques, C. & Lucas, M.R. & Martins, M.B. & Jorge, R., 2011. "The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 311-327, March.

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