overview_of_the_system
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+ | =====Overview of the system===== | ||
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+ | The CAPRI simulation tool is composed of a supply and market modules, interlinked with each other. | ||
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+ | In the //supply module//, regional or farm type agricultural supply of crops and animal outputs is modelled by an aggregated profit function approach under a limited number of constraints: | ||
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+ | In the //first stage//, producers determine //optimal variable input coefficients// | ||
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+ | In the //second stage, the profit maximising mix of crop and animal activities// | ||
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+ | A cost function covering the effect of all factors not explicitly handled by restrictions or the accounting costs –as additional binding resources or risk ensures calibration of activity levels and feeding habits in the base year and plausible reactions of the system. These cost function terms are estimated from ex post data or calibrated to exogenous elasticities. | ||
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+ | Fodder (grass, straw, fodder maize, root crops, silage, milk from suckler cows or mother goat and sheep) is assumed to be non-tradable, | ||
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+ | The market module breaks down the world into 40 country aggregates or trading partners, each one (and sometimes regional components within these) featuring systems of supply, human consumption, | ||
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+ | In the market module, special attention is given to the processing of dairy products. First, balancing equations for fat and protein ensure that these make use of the exact amount of fat and protein contained in the raw milk. The production of processed dairy products is based on a normalised quadratic function driven by the regional differences between the market price and the value of its fat and protein content. Then, for consistency, | ||
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+ | The market module comprises of a bilateral world trade model based on the Armington assumption (Armington, 1969). According to Armington’s theory, the composition of demand from domestic sales and different import origins depends on price relationships according to bilateral trade flows. This allows the model to reflect trade preferences for certain regions (e.g. Parma or Manchego cheese) that cannot be observed in a net trade model. | ||
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+ | The // | ||
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+ | The implementation in CAPRI is based on a core module file // | ||
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+ | **Figure 13: Link of modules in CAPRI** | ||
+ | {{:: | ||
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overview_of_the_system.txt · Last modified: 2022/11/07 10:23 by 127.0.0.1