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Some Old Truths Revisited

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  • Piggott, Roley R.

Abstract

The primary objective in this paper is to 'promote' the use of equilibrium displacement modeling, or comparative static analysis of general function models, as a research tool in agricultural price and policy analyses. This is by no means a new tool, but it does seem to be used much less in Australia than it is in the US where it has been the basis of several important journal papers in recent times, The paper includes applications to: (a) reproduce important results obtained by Euse (1958) regarding total elasticities; and (b) examine the price premium argument that has been advanced in favour of single-desk selling arrangements. The latter is the secondary objective in the paper. Whilst equilibrium displacement modelling has its shortcomings, it is a research tool that can provide useful results with few assumptions. It can be a substitute for econometric modelling when resource and time constraints are binding. The application to the price-premium argument re-confirms the doubts that many analysts have expressed about single-desk selling.

Suggested Citation

  • Piggott, Roley R., 1992. "Some Old Truths Revisited," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 36(02), August.
  • Handle: RePEc:ags:ajaeau:22504
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    References listed on IDEAS

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    1. John W. Freebairn & Fred H.G. Gruen, 1977. "Marketing Australian Beef And Export Diversification Schemes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(1), pages 26-39, April.
    2. Hertel, Thomas W., 1991. "Factor Market Incidence Of Agricultural Trade Liberalization: Some Additional Results," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(01), April.
    3. Grant M. Scobie & John D. Mullen & Julian M. Alston, 1991. "The Returns To Investment In Research On Australian Wool Production," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(2), pages 179-195, August.
    4. Smith, Ben, 1977. "Bilateral Monopoly and Export Price Bargaining in the Resource Goods Trade," The Economic Record, The Economic Society of Australia, vol. 53(141), pages 30-50, March.
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    Cited by:

    1. Rickard, Bradley J. & Gergaud, Olivier & Ho, Shuay-Tsyr & Hu, Wenjing, 2014. "Trade Liberalization In The Presence Of Domestic Regulations: Impacts Of The Proposed Eu-U.S. Free Trade Agreement On Wine Markets," Working Papers 190670, American Association of Wine Economists.
    2. Ambarawati, I Gusti Agung Ayu & Zhao, Xueyan & Griffith, Garry R. & Piggott, Roley R., 2003. "Distribution of Gains from Cattle Development in a Multi-Stage Production System: The Case of the Bali Beef Industry," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57829, Australian Agricultural and Resource Economics Society.
    3. Ambarawati, I Gusti Agung Ayu & Zhao, Xueyan & Griffith, Garry R. & Piggott, Roley R., 2004. "The Cost to the Bali Beef Industry of the October 2002 Terrorist Attack," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 12.
    4. Ali, Mubarik & Ahmed, Faryal & Channa, Hira & Davies, Stephen, 2016. "Pakistan’s fertilizer sector: Structure, policies, performance, and impacts:," IFPRI discussion papers 1516, International Food Policy Research Institute (IFPRI).
    5. Watson, Alistair S., 1996. "Principles of Grain Marketing: Some Lessons from Australian Experience," Technical Reports 113821, Australian Centre for International Agricultural Research.
    6. Henry W. Kinnucan & Øystein Myrland, 2002. "The Relative Impact of the Norway-EU Salmon Agreement: a Mid-term Assessment," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 195-219.
    7. Hill, Debbie J. & Piggott, Roley R. & Griffith, Garry R., 1996. "Profitability Of Incremental Expenditure On Fibre Promotion," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(03), December.
    8. Collins, David J. & Davidson, Brian, 2004. "Estimating Distributional Impacts of an Innovation Across Sectors in an Industry: A case study of the Australian wool industry," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58395, Australian Agricultural and Resource Economics Society.
    9. Carter, Colin A. & Wilson, William W., 1997. "Emerging differences in state grain trading: Australia and Canada," Agricultural Economics, Blackwell, vol. 16(2), pages 87-98, May.
    10. Bradley J. Rickard & Abigail M. Okrent & Julian M. Alston, 2013. "How Have Agricultural Policies Influenced Caloric Consumption In The United States?," Health Economics, John Wiley & Sons, Ltd., vol. 22(3), pages 316-339, March.
    11. Zhao, Xueyan & Ambarawati, I Gusti Agung Ayu & Piggott, Roley R. & Griffith, Garry R., 2004. "The Distribution of Gains from Cattle Development in a Multi-Stage Production System: The Case of the Bali Beef Industry," Working Papers 12920, University of New England, School of Economics.
    12. Lavoie, Nathalie, 2002. "An Empirical Evaluation Of The Canadian Wheat Board'S Ability To Price Discriminate In Bread Wheat Exports," 2002 Annual meeting, July 28-31, Long Beach, CA 19646, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Zhao, Xueyan & Mullen, John D. & Griffith, Garry R. & Griffiths, William E. & Piggott, Roley R., 2000. "An Equilibrium Displacement Model of the Australian Beef Industry," Research Reports 28007, New South Wales Department of Primary Industries Research Economists.
    14. Seyoum, Emayenesh & Goddard, Ellen & MacLaren, Donald & Griffith, Garry, 2002. "Modelling World Dairy Trade: The Potential Impact of Officially Supported Export Credits on the Australian Dairy Industry," 2002 Conference (46th), February 13-15, 2002, Canberra 183422, Australian Agricultural and Resource Economics Society.
    15. Ali, Mubarik & Ahmed, Faryal & Channa, Hira & Davies, Stephen, 2015. "The Role of Regulations in the Fertilizer Sector of Pakistan," 2015 Conference, August 9-14, 2015, Milan, Italy 211559, International Association of Agricultural Economists.
    16. World Bank, 2009. "A State Trading Enterprise for Grains in Russia? Issues and Options," World Bank Other Operational Studies 18899, The World Bank.
    17. Lavoie, Nathalie, 2001. "Price Discrimination In The Context Of Vertical Differentiation: A Modeling Approach For Wheat Exports," 2001 Annual meeting, August 5-8, Chicago, IL 20603, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Sean A. Cahill, 1997. "Calculating The Rate Of Decoupling For Crops Under Cap/Oilseeds Reform," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 349-378.
    19. Lavoie, Nathalie, 2002. "Price Discrimination in the Context of Vertical Differentiation: An Application to Canadian Wheat Exports," Research Reports 25210, University of Connecticut, Food Marketing Policy Center.
    20. Kinnucan, Henry W., 2016. "Timber price dynamics after a natural disaster: Hurricane Hugo revisited," Journal of Forest Economics, Elsevier, vol. 25(C), pages 115-129.
    21. Rickard, Bradley J. & Gonsalves, Jana L., 2008. "How would compliance with dietary recommendations affect revenues for agricultural producers?," Food Policy, Elsevier, vol. 33(5), pages 422-433, October.
    22. Ali, Mubarik & Ahmed, Faryal & Channa, Hira & Davies, Stephen, 2015. "Equilibrium Displacement Model for Fertilizer Sector of Pakistan," 2015 Conference, August 9-14, 2015, Milan, Italy 210943, International Association of Agricultural Economists.
    23. James, Jennifer S., 1999. "Endogenous Quality And Agricultural Policy Analysis," 1999 Annual meeting, August 8-11, Nashville, TN 21634, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    24. X. Zhao & J.D. Mullen & G.R. Griffith & R.R. Piggott & W.E. Griffiths, 2002. "The Economic Incidence of R&D and Promotion Investments in the Australian Beef Industry," Monash Econometrics and Business Statistics Working Papers 16/02, Monash University, Department of Econometrics and Business Statistics.

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