Methodical application of the AGMEMOD model for the formation of market equality in the market of grain

M. Pavlenko
Abstract

The article examines a mathematical model for calculating the grain market using the example of AGMEMOD, analyzes the impact of agrarian policy instruments on it, helps protect the interests of agricultural producers, and ensures the stability of production in agriculture. Modeling, including changes in production, consumption, prices, as well as the export and import of a number of grain products, was carried out. It has been found that effective regulation has a positive effect on the development of more profitable crops, namely wheat and maize, while the barley, oats, and rye sectors are likely to feel the opposite effect from the introduction of effective regulation. Moreover, these results are distributed by region and by producer groups. It is noted that the simulation results depend on a number of objective uncertain factors, which mainly relate to climate change, political, and financial crises. The results of AGMEMOD modeling are presented, taking into account various scenarios of effective regulation, reflecting changes in production, consumption, import, and export of the main grain crops in Ukraine. It has been determined that the effective functioning of the economy of Ukraine and agrarian industries depends on the development of the market, the balance of supply and demand in industry markets, namely, to ensure market equilibrium. The market environment is studied to identify problems and prospects for the development of the grain market, as well as the role of the state in the development and implementation of regulatory policies. The state of the market equilibrium was simulated with the existing supply and demand in the conditions of price uncertainty based on previous years

Keywords

market; market equilibrium; grain market; model; AGMEMOD

Suggested citation
Pavlenko, M. (2019). Methodical application of the AGMEMOD model for the formation of market equality in the market of grain. Economics and Business Management, 10(1), 77-84. http://doi.org//10.31548/bioeconomy2019.01.077
References
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