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Econometric application of linear programming: a model of Russian large-scale farm (the case of the Moscow Region)


  • Nikolai Svetlov

    (Moscow Timiryazev Agricultural Academy)


Linear programming model and general reciprocity theorem in mathematical programming are used to ap-proach utility functions of six large-scale Russian (the Moscow Region) case farms representing different production patterns. Technological coefficients of linear programmes are defined by means of linear regression. The data over 311 farms operating in the Moscow Region in 1999 are used. The utility functions include depreciation, wages and social costs. These attributes are about as desirable for the farms as profit. Milk production is associated with hidden utility amounting to a quarter of total utility. Vegetables market imperfections result from high price elasticity with respect to supply (–0.46). The scarcity of operating capital severely hampers agricultural production.

Suggested Citation

  • Nikolai Svetlov, 2001. "Econometric application of linear programming: a model of Russian large-scale farm (the case of the Moscow Region)," Econometrics 0112002, EconWPA.
  • Handle: RePEc:wpa:wuwpem:0112002
    Note: Type of Document - PDF; pages: 23 ; figures: included

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    References listed on IDEAS

    1. Swinnen, Johan F. M. & Gow, Hamish R., 1999. "Agricultural credit problems and policies during the transition to a market economy in Central and Eastern Europe," Food Policy, Elsevier, vol. 24(1), pages 21-47, February.
    2. W. Kip Viscusi & William N. Evans, 1998. "Estimation Of Revealed Probabilities And Utility Functions For Product Safety Decisions," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 28-33, February.
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    More about this item


    linear programming; general reciprocity theorem; Leontieff technologies; farm behaviour; Russian agriculture; case farm; utility function; operating capital.;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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