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Econometric application of linear programming: a model of Russian large-scale farm (the case of the Moscow Region)

Nikolai Svetlov ()

Econometrics from EconWPA

Abstract: Linear programming model and general reciprocity theorem in mathematical programming are used to ap-proach utility functions of six large-scale Russian (the Moscow Region) case farms representing different production patterns. Technological coefficients of linear programmes are defined by means of linear regression. The data over 311 farms operating in the Moscow Region in 1999 are used. The utility functions include depreciation, wages and social costs. These attributes are about as desirable for the farms as profit. Milk production is associated with hidden utility amounting to a quarter of total utility. Vegetables market imperfections result from high price elasticity with respect to supply (–0.46). The scarcity of operating capital severely hampers agricultural production.

Keywords: linear programming; general reciprocity theorem; Leontieff technologies; farm behaviour; Russian agriculture; case farm; utility function; operating capital. (search for similar items in EconPapers)
JEL-codes: Q12 Q21 C51 C52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm and nep-tra
Date: 2001-12-11
Note: Type of Document - PDF; pages: 23 ; figures: included
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpem:0112002

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