multi-market partial equilibrium model

DREAM, or Dynamic Research EvaluAtion for Management, is a menu-driven software package for evaluating the economic impacts of agricultural research and development (R&D). Users can simulate a range of market, technology adoption, research spillover, and trade policy scenarios based on a flexible, multi-market, partial equilibrium model.

The IMPACT model is a representation of a competitive world agricultural market. It is specified for 30 crop and livestock commodities, including cereals, soybeans, cotton, roots and tubers, meats, milk, eggs, oils, sugar/sweeteners, fruits/vegetables, and fish. It is specified as a set of 115 countries and regions within each of which supply, demand, and prices for agricultural commodities are determined.

The Economy-Wide Multi-Market (EMM) model is based on neoclassical microeconomic theory. In the model, an aggregate producer represents a specific zone’s production of a specific sector. In this application for Ethiopia, there are a total of 2,352 (42 sub-sectors x 56 zones) such representative producers. Consistent with the setup of many other multi-market models, the supply function, rather than the production function, is used to capture each representative producer’s response to market conditions.