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Modelling Supply Functions Using Linear Programming

  • Svend Rasmussen
Chapter
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

This last chapter provides an example of how to integrate the production economic theory presented in the first ten chapters of this book and the Linear Programming approach presented in the last three chapters. The example shows how is it possible to use Linear Programming to numerically generate the output supply function of the firm. This approach has shown to be a suitable modelling unit in a sector modelling context, in which the supplies from the individual firms are aggregated into the total industry supply.

Keywords

Production Plan Production Vector Shadow Price Supply Function Output Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Georgescu-Roegen, N. (1972). Process analysis and the neoclassical theory of the production function. American Journal of Agricultural Economics, 54, 279–294.CrossRefGoogle Scholar
  2. Jacobsen, B., Petersen, B. M., Berntsen, J., Boye, C., Sørensen, C. G., Søgaard, H. T., & Hansen, J. P. (1998). An integrated economic and environmental farm simulation model (FASSET). Copenhagen: Statens Jordbrugs- og Fiskeriøkonomiske Institut.Google Scholar
  3. Rasmussen, S. (2007). Agricultural sector modelling. A micro-based approach based on mathematical programming. FOI Working Paper nr. 10, Institute of Food and Resource Economics, University of Copenhagen, Copenhagen.Google Scholar
  4. Rosenthal, R. E. (2012). GAMS – a user’s guide. Washington, DC, USA: GAMS Development Corporation.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.Department of Resource Economics and Food PolicyUniversity of CopenhagenFrederiksbergDenmark

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