The SWAP model includes a sequential calibration routine and series of validation checks. The calibration phase of the SWAP model uses a sequential six-step process. The six steps are:
- Assemble input, output and elasticity data
- Solve a linear program subject to fixed resource and calibration constraints
- Derive the CES production function parameters using input opportunity costs from step two
- Estimate the crop and region-specific PMP cost functions using a least squares method
- Calibrate the aggregate demand functions and regional adjustment costs using prior demand elasticity estimates, and
- Optimize and simulate the calibrated SWAP model which includes tests for adequate calibration in terms of input and output prices and quantities.