Abstract
Farm household modelling is a powerful tool to aid policy makers with the analysis of sustainable land use. This paper gives the methodological foundations for a farm household simulation approach encompassing the results from quantified agronomic models, based on parametric optimisation. The paper discusses shortcomings and advantages of different approaches underlying the methodology, and demonstrates how these can be integrated into a pragmatic framework. Starting with a basic farm household model extensions are made and methods described to make those extensions operational. While econometric analysis alone is an insufficient tool to fully explain all relevant household behaviour, it is an important element in the approach. The results of the optimisation model are used in metamodelling exercises that summarise the relationship between exogenous parameters and indicator variables, to account for endogenous prices at the regional level.
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Kruseman, G. (2001). Assessing the Effects of Policy Measures on Household Welfare and Agro-Ecological Sustainability: an Overview of Farm Household Modelling Approaches. In: Heerink, N., van Keulen, H., Kuiper, M. (eds) Economic Policy and Sustainable Land Use. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57558-7_8
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DOI: https://doi.org/10.1007/978-3-642-57558-7_8
Publisher Name: Physica, Heidelberg
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