Torbjörn Jansson is with the Department of Economics, Swedish University of Agricultural Sciences, Uppsala, Sweden. E-mail: email@example.com for correspondence. Thomas Heckelei is with the Institute for Food & Resource Economics, University of Bonn, Bonn, Germany.
Estimating a Primal Model of Regional Crop Supply in the European Union
Article first published online: 6 SEP 2010
© 2010 Blackwell Publishing Ltd
Journal of Agricultural Economics
Volume 62, Issue 1, pages 137–152, February 2011
How to Cite
Jansson, T. and Heckelei, T. (2011), Estimating a Primal Model of Regional Crop Supply in the European Union. Journal of Agricultural Economics, 62: 137–152. doi: 10.1111/j.1477-9552.2010.00270.x
- Issue published online: 21 JAN 2011
- Article first published online: 6 SEP 2010
- (Original submitted September 2009, revision received June 2010, accepted July 2010.)
- Bayesian econometrics;
- CAPRI model;
- EU agricultural sector;
- mathematical programming
This article estimates behavioural parameters of the quadratic regional supply models in the modelling system CAPRI. Using the time-series data in the CAPRI database, we directly estimate the optimality conditions using a Bayesian highest posterior density estimator. After discarding regions with insufficient data, parameters for up to 23 crop production activities with related inputs, outputs, prices and behavioural functions are estimated for 219 regions in EU-27. The results are systematically compared with the outcomes of other studies. For crop aggregates (e.g. cereals, oilseeds, etc.) at the national level, the estimated own price elasticities of supply are found to be in a plausible range. On a regional level and for individual crops, the picture is much more diverse. As far as we know, there is no other study of similar regional and product coverage.