CAPRI Online Manual (update)

The supply side models of the CAPRI simulation tool are programming models with an objective function. If we want the optimal solution to coincide with the forecast procuced by the projection tools of CAPTRD, we need to ensure that first and second order optimality conditions (marginal revenues equal to marginal costs, all constraints feasible, and the solution is a maximum point) hold in the calibration point for each of the NUTS 2 or farm type models. The consequences regarding the calibration are threefold:

1. Elements not projected so far but entering the constraints of the supply models (e.g. feed, fertilization) must be defined in such way that constraints are feasible,
2. The cost function of the models must be shifted so that marginal costs and marginal revenues are equal in the calibration point.
3. The curvature of the functions must be such that the solution obtained is a maximum, not a minimum or a saddle point.