Model Structure and Parameterisation

This chapter provides a general description of the AGMEMOD model’s structure including its country and commodity coverage. We present the general form of a PE model and the AGMEMOD general form with specific examples of crops, livestock and dairy. Important features associated with the treatment of policy within the model are highlighted, in particular, market price support, direct payments and supply control. We describe how policy harmonisation addresses the incorporation of the diverse range of direct income supports and discuss the concept of key price and key price equations. The introduction of border protection and export competition measures in the model is also discussed.