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Baseline with market models
Project
Project code: TI-MA-08-PID1079
Contract period: 01.01.2001
- 31.12.2016
Purpose of research: Inventory & Assessment
Many agri-food markets are hallmarked by dynamic expansions ? some driven by changed demand concerning energy plants while others markets are withering. Will this development persist in future? Then we need to capture this developments for policy advisory work, to reflect its implications. Every second year, we generate projections of the situation on agri-food markets. Focal questions are which prices, supply, demand and trade will be relevant in 10 years time. We discuss results with Federal and State Ministries. To generate a baseline supports the political decision process by the availability of quantitative projections of future agri-food markets. There will be conclusions on topics of future developments and policy implications on global and EU agri-food markets. A baseline is not a forecast of the future but describes expected developments under current policies considering assumptions of future values of exogenous variables not covered in the system like e.g. poipulation. This baseline we will use as counterfactual scenario to simulate effects of alternative policies. A baseline projects current relations between variables. Estimated and synthetic parameters are incorporated in the equilibrium models AGMEMOD and MAGNET. Exogenous variables like the population will be projected into the future based on assumptions. Here, we often use external sources. Those future values of assumptions and the parameters allow to derive expected future values concerning agri-food markets. The partial equilibrium model AGMEMOD represents important agri-food markets and their interactions of the EU Member States. It uses prices and quantities. The general equilibrium model MAGNET covers all sectors globally. It reflects value flows.
Section overview
Subjects
- Agricultural Policy
- Market Analysis/Marketing Strategy