Modelling of Economic Equilibrium in the Agrarian Sector (The AGRO-2014 Model)
Rural Areas and Development, vol. 13, ISSN: 2657-4403, 2016
14 Pages Posted: 17 Dec 2020
Date Written: 2016
The article contains research results of the Institute of Agricultural Economics and Information (IAEI), Praha, for 2015, which focused on the development and use of the AGRO-2014 model. The model contains sections of agriculture, food processing, food retail (including catering without self-sufficiency), total food consumption (including catering and self-sufficiency) and food consumption per capita (in the detailed structure permitting nutritional evaluation). AGRO-2014 is a Leontieff’s matrix-type model with a range of about 1,200 commodities. The model was used to calculate the total income and expenditure in the agrarian sector, to estimate the significance of imports and exports in this sector and to calculate an estimate of the trade margins on domestic and imported foods in the Czech Republic. Six variants of model simulations were calculated to calculate the coverage of the food consumption by the population in different sizes of the food exports and imports. Further on, the range of the trade margins on domestic and imported foods were analysed for 2007-2013. Model calculations did not confirm a hypothesis that market chains discriminate the Czech food against foreign competition.
Keywords: Agrarian Sector, Mathematical Modelling, AGRO-2014 Model, Economic Equilibrium, Leontieff’s Matrix, Agriculture, Food Production, Retail, Food Consumption, Trade Margins
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