Modelling of Centrally Planned Food and Agriculture Systems: A Framework for a National Policy Model for the Hungarian Food and Agriculture Sector

In this paper the general structure and mathematical description of the Hungarian Agricultural Model is presented. As an introduction the basic characteristics of food and agriculture systems in the centrally planned economies and IIASA's approach in their modelling and some features of Hungarian agriculture are discussed. The Hungarian Agricultural Model has a descriptive and dynamic (recursive with a one year time increment) character. Besides the disaggregated food and agriculture (25 agricultural and 25 processed food commodities) the rest of the economy is also considered. The model is in fact a system of interconnected models. The economic management and planning submodel describes the decision making and control of socialist state following the idea of central planning of the economy. The desired structure of food production, export, import and investment targets are calculated by a linear programming model. The submodel of real sphere covers the whole national economy. The major blocks of the latter submodel are related to production (linear programming models for socialist agriculture and food processing sector, nonlinear optimization model for household and private agriculture), consumption and trade including nonlinear demand system as well as updating available resource and other model parameters