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Substitution Between Wools Of Different Fibre Diameter

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  • Beare, Stephen
  • Meshios, Helen
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    Abstract

    The extent to which wools with different fibre characteristics can be substituted in textile production and consumption holds implications for Australia's international and domestic marketing policies. An analysis of price-induced substitution between Australian wools of different fibre diameters was conducted. Fibre diameter was used to parameterise cross-price relationships in order to estimate a system of demand equations for wools by diameter class. The results indicate that direct substitution takes place within a very limited range of fibre diameters. The use of product characteristics to parameterise price relationships may be extended to other graded commodities.

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    File URL: http://purl.umn.edu/22499
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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural Economics.

    Volume (Year): 34 (1990)
    Issue (Month): 01 (April)
    Pages:

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    Handle: RePEc:ags:ajaeau:22499

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    Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
    Phone: 0409 032 338
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    Related research

    Keywords: Crop Production/Industries;

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    1. Jorgenson, Dale W., 1986. "Econometric methods for modeling producer behavior," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 3, chapter 31, pages 1841-1915 Elsevier.
    2. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
    3. J.N. Skinner, 1965. "Some Factors Affecting The Clean Price Of Greasy Wool," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 9(2), pages 176-187, December.
    4. Skinner, J.N., 1965. "Some Factors Affecting The Clean Price Of Greasy Wool," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 9(02), December.
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    Cited by:
    1. Chang, Hui-Shung (Christie), 2000. "Stability of price premiums for wool," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123621, Australian Agricultural and Resource Economics Society.
    2. Verikios, George, 2005. "A Model of the World Wool Market," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 139293, Australian Agricultural and Resource Economics Society.
    3. Templeton, Deborah J. & Griffith, Garry R. & Piggott, Roley R. & O'Donnell, Christopher J., 2004. "Measuring the Impact of Staple Strength-Enhancing Technologies on Australian Wool Producer Profits: A Duality-Based Approach," Working Papers 12922, University of New England, School of Economics.
    4. George Verikios, 2007. "Modelling the World Wool Market: A Hybrid Approach," Economics Discussion / Working Papers 07-18, The University of Western Australia, Department of Economics.
    5. Hanson, Phillip & Simmons, Phil, 1995. "Measures of Buyer Concentration in the Australian Wool Market," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(02), August.
    6. Chang, Hui-Shung (Christie), 2000. "A Cointegration Analysis of Wool Prices," Working Papers 12929, University of New England, School of Economics.

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