Calibrating and validating an equilibrium displacement model of the Australian sheep meat industry

Abstract

A new equilibrium displacement model of the Australian sheep meat industry was specified, calibrated and validated to enable the distribution of the total benefits from the adoption of new technology or promotion investments to be estimated across sheep meat value chains. A number of hypothetical simulations were run to test the impact of various 1 per cent displacements from the initial equilibrium. The gross benefits to the various industry sectors from the displacements were found to be broadly consistent with a 1 per cent change in total value in the sector where the displacement occurred. In the base case, sheep meat producers receive between 29 and 52 per cent of the potential gross be..