IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Modelling the Hungarian Agriculture: a methodological overview of the FARM-T model

Listed author(s):
  • Himics, Mihaly

This paper provides an opportunity for the reader to get an insight into the current modelling work at the Research Institute for Agricultural Economics, Hungary (AKI). After giving a short summary of the applied econometric models in the past decade, our latest development, the farm group model FARM-T will be introduced. Before introducing FARM-T in details, we devote the second part of the paper to collect all the major challenges we faced during the model development process, when we tried to establish a model structure, with which the possible effects of the introduction of the Single Payment Scheme (SPS) in Hungary can be properly estimated. Therefore, this chapter is meant to explain our motivation for choosing the applied model concept. In the following part of the paper, we provide a detailed introduction into the model. First, we describe the general structure, and then we go into the details about supply and demand sides. We lay an emphasis on the supply side, and especially how the agricultural production is represented by farm groups. After describing supply and demand sides, we focus on how the equilibrium is reached. Here, we discuss the interrelationships between sectors in more details (e.g. connection between crop and livestock production). We also stress the importance of regionally differentiated export and import markets. This enables us to take the various transportation modes, distances and market positions on different external markets into account. Finally, we discuss special model building issues related to the 2003 CAP reform, especially how the effects of decoupling of direct payments from production are estimated. We close this paper with a short summary of the problems concerned.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by European Association of Agricultural Economists in its series 107th Seminar, January 30-February 1, 2008, Sevilla, Spain with number 6697.

in new window

Date of creation: 2008
Handle: RePEc:ags:eaa107:6697
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:eaa107:6697. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.