Aggregation of Heterogeneous Firms in Mathematical Programming Models

Hayri Onal () and Bruce McCarl

European Review of Agricultural Economics, 1989, vol. 16, issue 4, 499-513

Abstract: Serious aggregation errors may arise in mathematical programming sector models when aggregation is not properly done. Existing aggregation literature mostly focuses on exact aggregation of homogenous groups of firms. However, homogeneity rarely holds in real problem situations. Moreover, theoretical aggregation developments are generally based on the assumption of availability of full information about the firms to be aggregated. Such full information is hardly a plausible assumption when modeling the agricultural sector. This paper discusses an empirical aggregation approach based on decomposition theory, which may be particularly helpful while aggregating heterogenous firms under the absence of full information. Copyright 1989 by Oxford University Press.

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (21)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:erevae:v:16:y:1989:i:4:p:499-513

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

More articles in European Review of Agricultural Economics from Oxford University Press and the European Agricultural and Applied Economics Publications Foundation Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().