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Agricultural Supply Response in ORANI

Listed author(s):
  • Adams, Philip D.

In the ORANI general equilibrium model, the supply behaviour of agricultural industries is the crucial element shaping the response of agriculture as a whole to any exogenous shock. In this paper, elasticity formulae which measure agricultural supply behaviour in the model are derived. These elasticities are found to be very sensitive to year-on year changes in the level of agricultural profitability, embodied within the model's data base. The appropriate procedure, therefore, is to construct a synthetic data set designed to capture the agricultural sector in a recent average year. Supply elasticities based upon these data represent the "preferred" estimates of this study.

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Article provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.

Volume (Year): 55 (1987)
Issue (Month): 03 (December)

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Handle: RePEc:ags:remaae:12431
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  1. Adams, Philip D & Higgs, Peter J, 1990. "Calibration of Computable General Equilibrium Models from Synthetic Benchmark Equilibrium Data Sets," The Economic Record, The Economic Society of Australia, vol. 66(193), pages 110-126, June.
  2. Vern Caddy, 1976. "Empirical Estimation of the Elasticity of Substitution : A Review," Centre of Policy Studies/IMPACT Centre Working Papers op-09, Victoria University, Centre of Policy Studies/IMPACT Centre.
  3. Peter B. Dixon & David P. Vincent & Alan A. Powell, 1976. "Factor Demand and Product Supply Relations in Australian Agriculture : The CRESH/CRETH Production System," Centre of Policy Studies/IMPACT Centre Working Papers op-08, Victoria University, Centre of Policy Studies/IMPACT Centre.
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