GTAP Resources: Resource Display
| GTAP Resource #7697 |
|---|
|
"Acreage Choice in Equilibrium Models: A Comparative Analysis" Authors: Carpentier, Alain, Fabienne Femenia, Christophe Gouel, Philippe Koutchade and David Laborde Abstract This paper compares three tractable frameworks for modeling acreage choice in agricultural equilibrium: (i) the Constant Elasticity of Transformation (CET) used in CGE models, (ii) a heterogeneous-land model with Fréchet-distributed yields inspired by quantitative trade theory, and (iii) a multinomial logit via entropy regularization capturing convex management costs under homogeneous land. Within a unified production environment, we derive land allocation, production responses, and own-price supply elasticities, and clarify microfoundations, calibration, and empirical restrictions. A key result shows that, when calibrated on identical land-rent shares and elasticities, Fréchet-based and CET models yield identical counterfactuals for values and output but differ for land quantities: the Fréchet approach preserves physical area balance, whereas CET generally violates it. We document limits of the Fréchet specification and show how multinomial logit cleanly separates acreage and intensification elasticities while remaining consistent with equilibrium. We structurally estimate the multinomial logit model using French farm-level data, use estimates to calibrate all three approaches on common moments, and compare counterfactuals. The analysis bridges CGE and positive mathematical programming, clarifies CET–Fréchet equivalence and differences, and guides calibration to acreage versus revenue shares when physical accounting and robust elasticities matter. |
| Resource Details () | GTAP Keywords | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
- Land use - Bridging CGE and new quantitative trade (NQT) literature - New quantitative trade models - Advances in quantitative methods - Calibration and parameter estimation - Functional forms and closure rules - Econometric methods - Europe (Western) |
| Attachments |
|---|
|
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access  GTAP Resource 7697 (532.6 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
| Comments (0 posted) |
|---|
|
You must log in before entering comments.
No comments have been posted. |
Last Modified: 4/15/2026 11:27:11 AM
