Spatial allocation and the shadow pricing of product characteristics

Abstract

The paper considers an industry transforming primary commodities (furm products) into processed cornmodities (food products), Il focuses on the allocation of ernbedded churacteristics (carbohydratc, protein, ctc.) both across space and among commodities. The approach generates a spatial competitive market equilibrium of production. consumption, transformation, and trade for both primary and processed comrnodities, along with the spatial distribution of shadow priees for the product characteristics, The model provides a basis for analyzing the allocation and pricing of agricultural products, food products, and charucteristics in spatial markets. The empirical usefulness of the model is illustrated in the contcxt of regional resource allocation in the V.S. dairy scctor, lô 1998 Elsevier Science B.v.0169-5150/98/$17.00 © 1998 Elsevier Science fi V. Ali rights rcscrved, l'II SO 169-5150(97 )00030-3 .1.

A spatial equilibrium analysis for the possible regional impacts of the European Union full membership on the Turkey's dairy industry

“…The theoretical framework can be expanded to incorporate multi-exporting and multi-importing regions, multimodal transportation, multi-commodity, and under a different market structure framework. It has been extensively used in agricultural economics to analyse the interregional market flows (Wigle 1991;Chavas et al 1993;Kawaguchi et al 1998;Guajardo and Elizondo 2003;Keskin 2003;Gomez-Plana and Devadoss 2004;Yavuz et al 2004;Demir 2012). Takayama and Judge (1972) developed the spatial equilibrium model to deal with such situations (McCarl and Spreen 1997;Guajardo and Elizondo 2003).…”

Beyond Tariffs: The Role of Non‐Tariff Barriers in Dairy Trade in the East African Community Free Trade Area

“…The specification of the SEM for EAC intra-regional trade in dairy products follows a standard linear inverse demand and supply function, originally developed by Takayama and Judge (1971) and then applied to the livestock and dairy sectors (Suzuki and Kaiser, 1994;Meyer et al, 1996;Chavas et al, 1998;Neumann et al, 2011). The structure of the current model is described in Table 5.…”

An Economic Analysis of the Effects of the Uruguay Round Agreement and Full Trade Liberalization on the World Dairy Sector

“…Following Chavas, Cox and Jesse (1998), we assume that there are two kinds of inputs used to produce the processed commodities y in each region: the vector of primary commodities x, and other inputs denoted by the vector v i (e.g., labor, capital). Following Chavas, Cox and Jesse (1998), we assume that there are two kinds of inputs used to produce the processed commodities y in each region: the vector of primary commodities x, and other inputs denoted by the vector v i (e.g., labor, capital).…”

“…4 are interpreted as market prices (see Chavas, Cox and Jesse 1998). 5 generates a Pareto-efficient resource allocation.…”