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Approximating supply response of a commodity with limited input data: The case of Australian bananas

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  • Abdalla, Ali
  • Sheales, Terry

Abstract

The Australian banana industry is an example where neither the time series data necessary for estimating grower responses nor the detailed cross sectional data on individual inputs are readily available to enable econometric estimation of producer response to price or cost changes. In this paper a calibration method of a CES production function, based on cost shares of variable and fixed inputs in total production cost, is used to approximate regional supply elasticities for banana growers in Australia. Although this approach to estimation may not be the ideal, it appears to produce plausible results.

Suggested Citation

  • Abdalla, Ali & Sheales, Terry, 2005. "Approximating supply response of a commodity with limited input data: The case of Australian bananas," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137736, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare05:137736
    DOI: 10.22004/ag.econ.137736
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    References listed on IDEAS

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    1. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Victoria University, Centre of Policy Studies/IMPACT Centre.
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    Cited by:

    1. Anke Leroux & Donald Maclaren, 2011. "The Optimal Time to Remove Quarantine Bans Under Uncertainty: The Case of Australian Bananas," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 140-152, March.

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