JOINT PRODUCTS IN THE SWOPSIM MODELING FRAMEWORK

Abstract

A consideration of joint products is important in the trade modeling currently underway at the Economic Research Service of the U.S. Department of Agriculture. Joint products are especially important in the modeling of the dairy and oilseed sectors. This report explains how recent work in multioutput production theory can be used to model these sectors in the SWOPSIM modeling framework. The advantage of applying theory is improved consistency of model parameter values for evaluating trade liberalization scenarios.