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Price-Linked Farm And Spatial Equilibrium Models

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  • Batterham, Robert L.
  • MacAulay, T. Gordon

Abstract

The integration of detailed farm supply models with the basic spatial equilibrium model, is outlined. The direct linking of farm linear programming models with the spatial equilibrium model is achieved so that both prices and quantities are endogenous. Both the farm model and the spatial equilibrium model must be specified in primal-dual form to make the linkages. Limited details of the use of such a model in a study of a segment of the grain handling system in New South Wales are presented along with conclusions relating to the pricing of grain handling services.

Suggested Citation

  • Batterham, Robert L. & MacAulay, T. Gordon, 1994. "Price-Linked Farm And Spatial Equilibrium Models," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(2), pages 1-28, August.
    • Handle: RePEc:ags:ajaeau:22953
    DOI: 10.22004/ag.econ.22953
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    References listed on IDEAS

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    2. Larry J. Martin, 1981. "Quadratic Single And Multi-Commodity Models Of Spatial Equilibrium: A Simplified Exposition," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 29(1), pages 21-48, February.
    3. Onal, Hayri & McCarl, Bruce A, 1989. "Aggregation of Heterogeneous Firms in Mathematical Programming Models," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 16(4), pages 499-513.
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    5. Hayri Önal & Bruce A. McCarl, 1991. "Exact Aggregation in Mathematical Programming Sector Models," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 319-334, July.
    6. T. Gordon MacAulay & Robert L. Batterham & Brian S. Fisher, 1989. "Solution Of Spatial Trading Systems With Concave Cubic Programming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 33(3), pages 170-186, December.
    7. Marvin Kottke, 1967. "The Anatomy of a Step Supply Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(1_Part_I), pages 107-118.
    8. James G. MacKinnon, 1975. "A Technique for the Solution of Spatial Equilibrium Models," Working Paper 199, Economics Department, Queen's University.
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    Cited by:

    1. Langyintuo, Augustine S., 2010. "Grain Distribution in Ghana under Imperfectly Competitive Market Conditions," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96166, African Association of Agricultural Economists (AAAE).
    2. Greenville, Jared W. & MacAulay, T. Gordon, 2004. "Tariffs and Steel: The US Safeguard Actions," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58452, Australian Agricultural and Resource Economics Society.
    3. Anderson, Duncan J. & Jack, Claire G., 2011. "Developing the Spatial Dimension of Farm Business Models," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108782, Agricultural Economics Society.
    4. Louw, D.B. & van Schalkwyk, Herman D., 2000. "Water markets an alternative for central water allocation?," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(4), pages 1-11, December.
    5. Greenville, Jared W. & MacAulay, T. Gordon, 2005. "Tariffs and steel: US safeguard actions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(3), pages 1-18.

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