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Calibrating mathematical programming spatial models
[Calibrage pour les modèles spatiaux de programmation mathématique]

Author

Listed:
  • Quirino Paris

    (UC Davis - University of California [Davis] - UC - University of California)

  • Sophie S. Drogue

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

  • Giovanni Anania

    (UniCal - Università della Calabria [Arcavacata di Rende, Italia] = University of Calabria [Italy] = Université de Calabre [Italie])

Abstract

Empirical spatial models of trade that are based on a mathematical programming specification often exhibit a large discrepancy between the equilibrium solution and the observed demand, supply and levels of trade flows among countries. This discrepancy may be due to several causes. Assuming, however, that a trade model is not misspecified - in the sense that all the countries involved in the specific commodity trade have been included in the study and that the relevant policy instruments have been taken into account - the cause of discrepancy may be traced either to imprecision of unit transaction costs or to imprecision in the measurement of the demand and supply functions' parameters, or both. Policy assessments based on this type of imprecise models may be unsatisfactory. This paper presents a methodology for calibrating trade models of increasing complexity which are capable of generating solutions that reproduce the commodity trade flows observed in a given base year among all countries. These models may serve as a springboard for assessing the impact of various policies on demand, supply, prices, trade flows, benefits and losses in the countries under study.

Suggested Citation

  • Quirino Paris & Sophie S. Drogue & Giovanni Anania, 2009. "Calibrating mathematical programming spatial models [Calibrage pour les modèles spatiaux de programmation mathématique]," Post-Print hal-02754337, HAL.
    • Handle: RePEc:hal:journl:hal-02754337
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02754337
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    References listed on IDEAS

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    Cited by:

    1. Anania, Giovanni, 2010. "EU Economic Partnership Agreements and WTO negotiations. A quantitative assessment of trade preference granting and erosion in the banana market," Food Policy, Elsevier, vol. 35(2), pages 140-153, April.
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    4. Valin, Hugo & Havlik, Petr & Mosnier, Aline & Obersteiner, Michael, 2012. "Impacts of Alternative Climate Change Mitigation Policies on Food Consumption under various Diet Scenarios," Conference papers 332253, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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