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The CRESH revival - or how to model agriculture in AGE models more realistically

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  • Simola, Antti

Abstract

Applied general equilibrium (AGE) modeling is a versatile tool for guiding public policies. However, the standard treatment of production function in AGE models is not completely satisfactory. It is commonly based on nested CES functions that are rigid and empirically hard to estimate. In this paper, I will show that by applying a more general functional form - CRESH - the agricultural sector can be presented more realistically in AGE models.

Suggested Citation

  • Simola, Antti, 2014. "The CRESH revival - or how to model agriculture in AGE models more realistically," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182791, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182791
    DOI: 10.22004/ag.econ.182791
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    References listed on IDEAS

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    1. van der Werf, Edwin, 2008. "Production functions for climate policy modeling: An empirical analysis," Energy Economics, Elsevier, vol. 30(6), pages 2964-2979, November.
    2. Hanoch, Giora, 1971. "CRESH Production Functions," Econometrica, Econometric Society, vol. 39(5), pages 695-712, September.
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