Roger D. Norton

Prices and Incomes in Linear Programming Models

A procedure is developed for representing competitive and noncompetitive market structures in linear programming models. Arbitrarily close approximations to nonlinear forms—in both the objective function and constraint set—can be made without much loss of the computational efficiency of the simplex algorithm. The noncompetitive market structure may be used for measuring income at endogenous prices in a competitive model and may serve as a constraint on that measure of income to represent certain classes of economic policies. Product substitution effects in demand can be approximated by a linear program. The demand structure can be transformed to take account of any shift in demand which can be represented by a rotation of the demand function.

Market Equilibrium Computations in Activity Analysis Models

This paper shows how an approximate competitive market equilibrium may be computed as the solution to a linear programming model, when production possibilities are described by activity analysis vectors and demand functions are locally linear. Numerical examples show that the degree of approximation may be expected to be very small in many cases. Prices and quantities of goods and resources and also incomes are explicit in the primal. The defining characteristics of a market equilibrium are written as primal constraints. Linearizations of inherently nonlinear expressions are attained by use of grid linearizations and the associated interpolation variables.

Portugal's entry into the EEC: Aggregate and distributional effects determined by means of a general equilibrium model

Abstract This paper addresses the question of how to construct a policy-oriented model on the basis of a social-accounting matrix (SAM). Starting from a Portuguese SAM, a general-equilibrium model is developed step by step, and when appropriate options are indicated for the models specification. The model is then applied with Portuguese data to the computation of general-income multipliers in order to provide a preliminary assessment of the aggregative and distributional effects on Portugal of entry into the European Economic Community. Increases in the availability of foreign exchange are found to affect urban incomes more than rural incomes and to affect the lower-income groups more than the upper-income groups in both rural and urban areas. the general-equilibrium model developed here contains production functions of the process-analysis type, labor-supply functions, possibilities for substitution among types of labor and between labor and capital, export and import functions, and a simple set of government accounts.

A note on Prudencio's experimental tests of the coase propositions

Abstract The purpose of this note is to review Prudencios recent experimental test of the Coasian propositions of neutrality and efficiency. His conclusion that the propositions are statistically supported by the experimental results is not substantiated. A careful examination of the design and methodology of the experiment leads to the conclusion that the experimental bargaining cannot be considered voluntary, and that the results are likely to be influenced by hypothetical bias. Other problems with the representativeness of Prudencios participants are also discussed.

Response to section C

The paper by Janssen is wide-ranging and thoughtful and raises a number of penetrating issues. While it deals with methodological concerns, it is characterized by a pragmatic, problem-solving orientation. I find myself largely in agreement with his conclusions, such as the need to initiate the research process with a definition of the problem to be solved instead of with the data available, the usefulness of pilot policy projects, and the need to study possible policy interventions and not just agricultural systems.

Policy Frameworks for International Agricultural and Rural Development

Agriculture is one of the principal drivers of economic development. Macro policies affect it through influence on relative prices. The many challenges within the sector include linking small farmers to value chains, putting land tenure regimes and water management policies on a sound footing, making the agricultural research agenda and agricultural extension respond to farmers’ priorities, promoting a stronger role for the private sector, encouraging sustainable development of rural finance, and giving more opportunities to women farmers. Policies are not as effective when aimed at supporting particular crops but more useful when they provide incentives for effective use of basic resources, including land, water, financial capital, and technology.

A multi-sectoral model with endogenous terminal conditions

The numerical projections in certain classes of planning models are sometimes distorted due to truncation of the time horizon. Attempts to overcome this problem have led to various algebraic specifications of terminal conditions, which require that either a given level of capital stock be accumulated at the end of the planning period or that a specific post terminal growth rate be postulated. A static model is presented, which makes the terminal conditions fully consistent with the endogenous behavior in the context of a multisectoral optimization model. The model focuses on comparative advantage choices in international trade and their implications for growth rates of national product and for the allocation of investment. The Korean linear programming model is used to demonstrate the procedure. Results seem to indicate that the numerical dimensions of the terminal conditions problems are serious and that the lack of price endogeneity is a serious limitation to the interpretation of results of many planning models.

Use of hot-dry-rock geothermal resources for space heating: a case study

This study shows that a hot dry rock (HDR) geothermal space heat system proposed for the National Aeronautics and Space Administrationss Wallops Flight Center (WFC) will cost

Mathematical Programming for Economic Analysis in Agriculture.

10.9 million, saving

Agricultural development policy: concepts and experiences.

4.1 million over the existing oil heating system over a 30-yr lifetime. The minimal, economically feasible plan for HDR at WFC is shown to be the design of a single-fracture reservoir using a combined HDR preheat and a final oil burner after the first 4 years of operation. The WFC cost savings generalize and range from