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Integrating Agricultural Input Expenditure into a South African Agricultural Sector’s Partial Equilibrium Model

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  • Gebrehiwet, Yemane
  • Meyer, Ferdinand H.
  • Kirsten, Johann F.

Abstract

Agricultural inputs expenditure has not been widely incorporated in most partial equilibrium models. Moreover, input costs are treated exogenous and the recursive link between input and output side of the sector is overlooked in few of the models that attempts to incorporate input expenditures. The study has addressed both issues by integrating agricultural input expenditures into the South African sectoral partial equilibrium model by endogenising input costs and recursively linking both input and output side of the agricultural sectors to enhance the results of a standard partial equilibrium model in analysing the effect of policies on agricultural sector.

Suggested Citation

  • Gebrehiwet, Yemane & Meyer, Ferdinand H. & Kirsten, Johann F., 2010. "Integrating Agricultural Input Expenditure into a South African Agricultural Sector’s Partial Equilibrium Model," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 97050, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae10:97050
    DOI: 10.22004/ag.econ.97050
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    References listed on IDEAS

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    3. Mushtaq, Khalid & Dawson, P. J., 2002. "Acreage response in Pakistan: a co-integration approach," Agricultural Economics, Blackwell, vol. 27(2), pages 111-121, August.
    4. Meyer, Ferdinand H. & Westhoff, Patrick C. & Binfield, Julian C.R. & Kirsten, Johann F., 2006. "Model closure and price formation under switching grain market regimes in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(4), pages 1-12, December.
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    7. Patrick C. Westhoff & Robert Baur & Deborah L. Stephens & William H. Meyers, 1990. "FAPRI U.S. Crops Model Documentation," Center for Agricultural and Rural Development (CARD) Publications 90-tr17, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    8. Gafar, John, 1997. "The supply response of aggregate agricultural output in Jamaica," Agricultural Economics, Blackwell, vol. 16(3), pages 205-217, August.
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    Agricultural Finance; Farm Management;

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