| This paper is a summary of some of the considerations involved in applying an existing model to a new problem, in particular in deciding whether to update or not, and some of the issues involved in interpreting the output from the new application. Thus where you start from does influence where you end up. Both change in total surplus and to a lesser extent the distribution of this change in total surplus across sectors, depends on the price and quantity data which is used to define the initial equilibrium, even if elasticity values are the same. So careful consideration should be given to whether an existing model should be updated because updating a model does matter. The final point to restate is that consumers of pig meat end up being the winners from... |
