An Economic Framework for Evaluating New Wheat Varieties
AbstractEstimation of the benefits of research using changes in producer and consumer surplus following a research-induced shift in the supply curve provides a useful framework for the analysis of new wheat varieties. However, the framework assumes an homogeneous product, which is not the case for wheat where there are changes in quality as a result of research. This aspect is particularly important where there is a trade-off between quality and yield, as in the case of a higher-yielding, but lower-quality wheat variety. The aim of this paper is to incorporate these quality aspects into an analysis based on a partial equilibrium framework by separating the wheat market into segments based on wheat quality. A change in the type of wheat produced can then be represented as a shift from one segment to another. The analysis involves identifying those who will produce the new variety, and defining supply curves for those producers and other producers separately. Empirical testing of the model with hypothetical varieties indicates that the results obtained are consistent with prior expectation.
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Bibliographic InfoArticle provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.
Volume (Year): 57 (1989)
Issue (Month): (December)
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- Brennan, John P. & Thorne, Fiona S. & Kelly, Paul W. & Murray, Gordon M., 2004. "Defining the Costs of an Outbreak of Karnal Bunt of Wheat," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58382, Australian Agricultural and Resource Economics Society.
- You, Liangzhi & Bolwig, Simon, 2003. "Alternative growth scenarios for Ugandan coffee to 2020:," EPTD discussion papers 98, International Food Policy Research Institute (IFPRI).
- Brennan, John P. & Martin, Peter J. & Mullen, John D., 2004. "An Assessment of the Economic, Environmental and Social Impacts of NSW Agriculture's Wheat Breeding Program," Research Reports 27997, New South Wales Department of Primary Industries Research Economists.
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