Differences

This shows you the differences between two versions of the page.

--- input_allocation [2020/02/11 09:49] – [Input allocation excluding young animals, fertiliser and feed] matsz
+++ input_allocation [2020/02/11 09:50] – matsz
@@ Line 27: / Line 27: @@
 Following these rules we finally got a matrix of estimated and synthetic calculated input coefficients for both, the ‘per activity level’ and the ‘per production’ unit definition((In addition, a similar procedure (using slightly different groups) was applied to constructing coefficients for the ‘Other’ activities (e.g. OCER, OFRU, OVEG), which had been omitted from the econometric estimations. They are given the average group coefficient, unless there is none; then they are given the average northern or southern European coefficient as appropriate.)). For the synthetic one there was no estimated standard error available but we wanted to use those later on. So we assumed them –to reflect that these coefficients have only weak foundation– to have a t statistic of 0.5.
-The ‘per level’ definition was only taken over if the coefficient was really estimated or if no per production unit definition did exist. To transfer the latter into per activity level definition, we multiplied them with the average yield (1985 2001) of the respective activity. The resulting coefficients and their standard errors were then used a HPD approach as a first// set of priors//((The previously described completions are implemented in file gams\input\fill_inp_matrix.gms. Adjustments were made for scaling issues with regard to eggs for certain countries, and grass for Finland. In addition, when ‘CAFR’,’CAFF’ and ‘HEIR’ did not have econometric data, they assumed the coefficients and standard errors of ‘CAMR’, ‘CAMF’ and ‘HEIF’ respectively (CAPRI activity code definitions in the Annex).)).
+The ‘per level’ definition was only taken over if the coefficient was really estimated or if no per production unit definition did exist. To transfer the latter into per activity level definition, we multiplied them with the average yield (1985 2001) of the respective activity. The resulting coefficients and their standard errors were then used a HPD approach as a //first set of priors//((The previously described completions are implemented in file gams\input\fill_inp_matrix.gms. Adjustments were made for scaling issues with regard to eggs for certain countries, and grass for Finland. In addition, when ‘CAFR’,’CAFF’ and ‘HEIR’ did not have econometric data, they assumed the coefficients and standard errors of ‘CAMR’, ‘CAMF’ and ‘HEIF’ respectively (CAPRI activity code definitions in the Annex).)).
 Missing econometric estimates and compatibility with EAA figures were not the only reasons that made a reconciliation of estimated inputs coefficients necessary. Moreover, the economic sense of the estimates could not be guaranteed and the definition of inputs in the estimation differed from the one used in CAPRI. Therefore we decided to include further prior information on input coefficients in agriculture. The //second set of priors// in the input reconciliation was therefore based on data from the EAA. Total costs of a certain input within an activity in a European Member State was calculated by multiplying the total expenditures on that input with the proportion of the total expected revenue of that activity to that of all activities using the input. Total expected revenue in this case was the production value (including market value and premiums) of the respective activity. If this resulted in a certain coefficient being calculated as zero due to missing data, then this coefficient would be replaced by one from a similar activity e.g. a zero coefficient for ‘MAIF’ would be replaced by the coefficient for ‘GRAS’