An Interregional Activity Analysis Model for the Agricultural Sector

Abstract

This paper attempts to specify an activity analysis equilibrium model for the agricultural sector which would account for the competitive pricing and allocation of primary, intermediate, and final commodities in space. Linear final commodity demand relations are specified and the concept of maximizing net consumer surplus is employed as a basis for deducing the price and allocation equilibrium conditions and formulating the primal-dual programming problem. An algorithm is suggested for obtaining the equilibrium solution and an example is specified which reflects the structure of the programming problem.