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A Simultaneous-Equation Model of Spatial Equilibrium and Its Application to the Broiler Markets

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  • Tsoung-Chao Lee
  • Stanley K. Seaver

Abstract

The simultaneous-equation approach is used to formulate a positive spatial equilibrium model consisting of linear behavioral and definitional equations and bilinear equilibrium conditions. In contrast to the normative Takayama-Judge quadratic spatial equilibrium model, the positive model leads to a smaller simplex tableau and permits evaluation of the effect of predetermined variables on spatial equilibrium. The model is applied to structural changes of broiler markets. Spatial equilibrium multipliers are presented to show the interregional competition of the existing broiler markets.

Suggested Citation

  • Tsoung-Chao Lee & Stanley K. Seaver, 1971. "A Simultaneous-Equation Model of Spatial Equilibrium and Its Application to the Broiler Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 63-70.
    • Handle: RePEc:oup:ajagec:v:53:y:1971:i:1:p:63-70.
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    File URL: http://hdl.handle.net/10.2307/3180298
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    Cited by:

    1. Wu, Hui-Yuan Chen & Jack, Robert L. & Colyer, Dale, . "The Northeast And Interregional Competition For Broilers," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 14(1), pages 1-8.
    2. Johnson, Marc A., 1981. "Current And Developing Issues In Interregional Competition And Agricultural Transportation," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(1), pages 1-10, July.
    3. Allen, P. Geoffrey, 1975. "A Framework For Measuring The Economic Impact Of Alternative Pollution Control Policies: An Application To The Egg Producing Industry," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 4(2), pages 1-15, October.
    4. Allen, P. Geoffrey, 1975. "A Framework For Measuring The Economic Impact Of Alternative Pollution Control Policies: An Application To The Egg Producing Industry," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-15, October.

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