MICHIGAN STATE UNIVERSITY
IN MANY MODELS OF SOCIOECONOMIC SYSTEMS, THERE ARE A NUMBER OF REPEATED CALCULATIONS WHICH PERFORM AN ACCOUNTING FUNCTION.
Pervis, D. W.; Wolf, Christopher · 1970

Abstract
THE USE OF AGACC (ACCOUNTING ROUTINE FOR THE AGRICULTURAL SECTOR) WILL ENSURE CONSISTENT ACCOUNTING AND AGGREGATION OF VARIOUS PARAMETERS THROUGHOUT A MODEL. THIS ALLOWS COMPARISON OF THE RESULTS OF SIMILAR MODELS USED IN DIFFERENT COUNTRIES, OR DIFFERENT MODELS IN THE SAME COUNTRY. AGACC CALCULATES DATA ON SUCH ITEMS AS THE EXPENDITURES ON PRODUCTION INPUTS, MONETARY PROFITS, THE VALUE OF PRODUCTION, AND THE CONSUMPTION OF PRODUCTS, AT THREE AGGREGATION LEVELS -- ENTERPRISE, REGIONAL AND NATIONAL. THE DATA REQUIREMENTS ARE CLASSIFIED INTO FOUR CATEGORIES: MODEL SIZE PARAMETERS, POLICY-DETERMINED COEFFICIENTS, TECHNOLOGY DETERMINED COEFFICIENTS, AND MODEL VARIABLES. THE MODEL SIZE PARAMETERS INCLUDE THE NUMBER OF REGIONS OF THE COUNTRY, THE TOTAL NUMBER OF ENTERPRISES, THE NUMBER OF SINGLE OR MULTI-PRODUCT ENTERPRISES, AND THE NUMBER OF MULTI-PRODUCT LIVESTOCK ENTERPRISES. IT ALSO INCLUDES THE NUMBER OF PRODUCTS FROM MULTI-PRODUCT CROP AND LIVESTOCK ENTERPRISES, AND THE NUMBER OF PRODUCTION INPUTS. POLICY-DETERMINED COEFFICIENTS REQUIRE DATA ON THE TAX RATE ON FARM PROFITS; TECHNOLOGY DETERMINED COEFFICIENTS REFER TO THE PROPORTIONS OF TOTAL PRODUCTION LOST ON A FARM, AND THE AMOUNT OF NUTRIENT IN EACH PRODUCT. THE MODEL VARIABLES ARE PRODUCTION OF ALL PRODUCTS; CONSUMPTION OF EACH PRODUCT; PRICES OF PRODUCTION INPUTS AND FARM PRICES OF EACH PRODUCT; AND THE QUANTITY OF EACH PRODUCTION INPUT AND POPULATION SIZES IN EACH REGION. MATHEMATICAL CALCULATIONS USED IN AGACC ARE SIMPLE ARITHMETIC ACCOUNTING CALCULATIONS. THE DOCUMENT GIVES INDICES USED IN THESE CALCULATIONS, THE INPUT AND OUTPUT VARIABLE DEFINITIONS, AND MATHEMATICAL CALCULATIONS FOR EACH OF THE THREE AGGREGATION LEVELS. IT ALSO PROVIDES A SAMPLE RUN OF THE ROUTINE AND A DESCRIPTION OF THE PROGRAMMING, TESTING AND IMPLEMENTATIONS OF AGACC.
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Classification
USAID DEC