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Comparing numerical methods for solving the competitive storage model AgEcon
Gouel, Christophe.
This paper compares numerical methods for solving the competitive storage model. Since storage implies an inequality constraint, the solution methods must be considered carefully. The model is solved using value function iteration, and several projection approaches, including parameterised expectations and decision rules approximation. Using a penalty function approach to smooth the inequality constraint, perturbation methods are also applied. Parameterised expectations proves the most accurate method, while perturbation techniques are shown inadequate for solving this highly nonlinear model. The endogenous grid method allows rapid solution if supply is assumed to be inelastic.
Tipo: Working or Discussion Paper Palavras-chave: Binding constraint; Nonlinear rational expectations models; Numerical methods; Agricultural and Food Policy; C63; D84; E37.
Ano: 2010 URL: http://purl.umn.edu/115430
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The Art of Exceptions: Sensitive Products in the Doha Negotiations AgEcon
Gouel, Christophe; Mitaritonna, Cristina; Ramos, Maria Priscila.
It is necessary for multilateral trade negotiations to include exceptions to accommodate politically sensitive sectors. However, given the highly concentrated distribution of agricultural protection, too many exceptions put at risk the objectives of World Trade Organization. This paper assesses the delicate balance required, based on the case of agricultural trade protection in Europe and Japan, two countries where tariff dismantling in the agricultural sector is a particularly sensitive issue. Since agricultural border protection is heterogeneous, we avoid aggregation bias by extending a multi-country computable general equilibrium model to the product level. This allows us to combine the assets from general equilibrium and partial equilibrium modeling,...
Tipo: Working or Discussion Paper Palavras-chave: Agricultural trade; Doha Development Agenda; CGE model; Disaggregation; Sensitive products; Tariff-rate quotas; Agricultural and Food Policy; C68; F13; F17; Q17; Q18.
Ano: 2010 URL: http://purl.umn.edu/115431
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Stochastic Viability of Second Generation Biofuel Chains: Micro-economic Spatial Modeling in France AgEcon
Bamiére, Laure; Martinet, Vincent; Gouel, Christophe; Le Cadre, Elodie.
Within an overall project to assess the ability of the agricultural sector to contribute to bioenergy production, we set out here to examine the economic and technological viability of a bioenergy facility in an uncertain economic context, using the stochastic viability approach. We consider two viability constraints: the facility demand for lignocellulosic feedstock has to be satisfied each year and the associated supply cost has to be lower than de profitability threshold of the facility. We assess the viability probability of various supplying strategies consisting in contracting a given share of the feedstock demand with perennial dedicated crops at the initial time and then in making up each year with annual dedicated crops or wood. The demand...
Tipo: Conference Paper or Presentation Palavras-chave: Biofuel; Biomass production; Spatial economics; Stochastic viability; Monte Carlo simulation; Resource /Energy Economics and Policy.
Ano: 2011 URL: http://purl.umn.edu/114238
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