Files
Abstract
Agricultural inputs expenditure has not been widely incorporated in most partial
equilibrium models. Moreover, input costs are treated exogenous and the recursive link
between input and output side of the sector is overlooked in few of the models that
attempts to incorporate input expenditures. The study has addressed both issues by
integrating agricultural input expenditures into the South African sectoral partial
equilibrium model by endogenising input costs and recursively linking both input and
output side of the agricultural sectors to enhance the results of a standard partial
equilibrium model in analysing the effect of policies on agricultural sector.