What is meant by flexible functions and regularity?
The supply, processing, feed and final demand function in the CAPRI market model are flexible in the sense they comprise enough parameter to be calibrated to any regular set of own and cross price elasticities. Regular means that the parameter set is calibrated as to be in line with the assumption of profit maximising producers and utility maximising consumers. For insiders: that captures curvature of the Hessian.
