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Abstract
Technical change at the farm level or changes in
input prices often entail that the firm's supply function
changes. These changes can take place in numerous ways. This
paper presents a methodology that increases the consistency in
supply responses across various sets of agricultural products
and farm types with a market model based on a statistical
response function approach. Since most farm simulation
models are limited to a subset of regions and farm types, the
linkage to an aggregated model requires a procedure for
expanding these results to non sample regions, so that full
regional coverage is achieved. This paper addresses theoretical
aspects related to the consistency between micro and market
level models. Next it deals with some empirical findings related
to the selection of different functional forms for extrapolation.
We conclude with a critical reflection on applicability of this
method in addressing further needs on up-scaling of other
economic as well as non-economic indicators.