Modelling Dairy Supply for Hungary and Poland by Generalised Maximum Entropy using Prior Information
This paper develops an innovative quantitative approach to modelling milk and beef supplies in transition countries, which is then applied to Hungary and Poland. Relying on generalised maximum entropy formulation, we provide a useful empirical basis for treating ill-posed and ill-conditioned problems by reconciling sample information and non-sample information. Adjustments in quasi-fixed factors are explicitly taken into account in order to capture dynamics. Inelastic milk supply responses were found both for Hungary and Poland. Milk and beef outputs behave as complements in the medium run, but not in the short run for Poland. The empirical estimates found are generally in line with the assumptions made in calibrated models.
TONINI Axel;
JONGENEEL Roel;
2008-10-30
OXFORD UNIV PRESS
JRC45318
0165-1587,
http://erae.oxfordjournals.org/cgi/content/full/jbn018?,
https://publications.jrc.ec.europa.eu/repository/handle/JRC45318,
10.1093/erae/jbn018,
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