A CALIBRATION METHOD FOR AGRICULTURAL ECONOMIC PRODUCTION MODELS

A method for calibrating agricultural production models is presented. The data requirements are those for a linear programming model with th e addition of elasticities of substitution. Using these data, producti on models with a CES production function can be simply and automatical ly calibrated using small computers. The resulting models are shown to satisfy the standard microeconomic conditions. When used for analysis of policy changes, the CES models are able to respond smoothly to cha nges in prices or constraints. Prior estimates of elasticities of subs titution, supply or demand can be incorporated in the models.