2018 Volume 3 Issue 2 Supplementary
Creative Commons License

MODELING OF AGRICULTURE SECTOR OF IRAN AFTER TARGETED SUBSIDIES USING MULTIPLE CRITERIA DECISION MAKING TOOL


Ataollah RASOOLIZADEH1*, Monirahmad RASOOLIZADEH2
Abstract

Subsidy with distortion of prices prevent optimal allocation of resources and decrease economic growth and on the other hand has an irreparable effects on country economic sectors including the agricultural sector by creating the budget deficit and increasing social costs. If the trend of these variables be determined, economic policymakers with choose of appropriate support packages and fiscal and monetary policy is closer to the goals One of the methods that can be a suitable solution is input - output table. In the present study performed by input - output analysis (2007) and production predictive models, effects of rising the price of energy carriers (gasoline, white oil, gasoil, black oil, liquid gas,electricity and natural gas) during first(2010) and second (2014) phases of Iranian. One conomicvariables (changes in production, pricechanges, changes incosts, changes inimports, changes ininvestmentand changes indemand) in agricultural sector (plantation and gardening, fishing and foresty) have been studied. After this changing in agricultural sector, optimized solution was suggested to the problem of planning in this sector and the agricultural sector was modeled by using the linear programming and multiple criteria decision making (MCDM). A crop-planning problem is usually formulated as a single objective linear programming model. The objective is either the maximization of return from cultivated land or the minimization of cost of cultivation. This type of problem, however, normally involves more than one goal. We thus formulate a crop-planning problem as a goal program (an MCDM tool) and discuss the importance of three different goals for a case problem. We solve the goal program with a real world data set, and compare the solution with that of linear program. We argue that the goal program provides better insights to the problem and thus allows better decision support.


Issue 2 Volume 11 - 2026