Mathematical model AGRO-3 for simulations and predictions of agrarian policy impacts on the agrarian sector
2001
Foltyn, J. | Zednickova, I. (Vyzkumny Ustav Zemedelske Ekonomiky, Prague (Czech Republic))
Model AGRO-3 is a non-linear optimisation model of the Czech agrarian sector which is based on principles of the market equilibrium on the three markets which create the agrarian sector: market 1 - agricultural products, market 2 - food industry products, market 3 - retail and human consumption of food products. Exogenous variables of the model are represented by general macroeconomic conditions, internal economic conditions of the Czech agriculture and conditions of the agrarian policy including international commitments of the Czech Republic. Endogenous variables are represented by the production amount of all commodities, market prices on all markets and costs in the markets 2 and 3, further corresponding quantities of food consumption acceptable by the population related to food market prices and finally possible exports and imports on all markets. Optimisation criterion is profit of agricultural producers, processors and retailers. The model enables to solve various questions of the agrarian policies on the development of the national agrarian sector. At present the model AGRO-3 is modified for conditions of the Lithuanian agrarian sector in the Lithuanian Institute of Agrarian Economics, Vilnius.
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