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Production Structure And The Australian Sawmilling Industry

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  • Bigsby, Hugh R.

Abstract

This paper examines the production structure of the Australian sawmilling sector over the period 1950-51 to 1984-85 using a translog cost function. The results show that the sawmilling industry is best represented by a production function which does not have any restrictions on functional form. Inputs, including capital, labour, materials and energy, are generally found to substitutable for one another, although the degree of substitutability is small. There have been economies of scale in the Australian sawmilling industry, and technological change has been capital and energy-using, and labour and materials-saving.

Suggested Citation

  • Bigsby, Hugh R., 1994. "Production Structure And The Australian Sawmilling Industry," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(3), pages 1-18, December.
    • Handle: RePEc:ags:ajaeau:22730
    DOI: 10.22004/ag.econ.22730
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    File URL: https://ageconsearch.umn.edu/record/22730/files/38030271.pdf
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    References listed on IDEAS

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    1. Hirofumi Uzawa, 1962. "Production Functions with Constant Elasticities of Substitution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 29(4), pages 291-299.
    2. O'Regan, Michael & Bhati, U.N., 1991. "Pricing and allocation of logs in Australia," Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) Archive 316173, Australian Government, Australian Bureau of Agricultural and Resource Economics and Sciences.
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    4. J. C. Nautiyal & B. K. Slngh, 1986. "Long-Term Productivity and Factor Demand in the Canadian Pulp and Paper Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 34(1), pages 21-44, March.
    5. Christensen, Laurits R & Greene, William H, 1976. "Economies of Scale in U.S. Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 655-676, August.
    6. Campbell, H F & Jennings, S M, 1990. "Cost, Technology and Input Demand in the Tasmanian Sawmilling Industry," Australian Economic Papers, Wiley Blackwell, vol. 29(55), pages 272-282, December.
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    Cited by:

    1. Roos, Anders & Flinkman, Matti & Jappinen, Armas & Lonner, Goran & Warensjo, Mats, 2001. "Production strategies in the Swedish softwood sawmilling industry," Forest Policy and Economics, Elsevier, vol. 3(3-4), pages 189-197, November.
    2. Chand, Narendra & Kerr, Geoffrey N. & Bigsby, Hugh R., 2010. "Why some community forests are performing better than others: a case of forest user groups in Nepal," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96827, New Zealand Agricultural and Resource Economics Society.
    3. Krasachat, W., 2000. "Production Structure and Technical Change in Thai Agriculture, 1972-1994," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123688, Australian Agricultural and Resource Economics Society.
    4. Griffiths, William E. & O'Donnell, Christopher J. & Cruz, Agustina Tan, 2000. "Imposing regularity conditions on a system of cost and factor share equations," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(01), pages 1-21.
    5. Chand, Narendra & Kerr, Geoffrey N. & Bigsby, Hugh, 2015. "Production efficiency of community forest management in Nepal," Forest Policy and Economics, Elsevier, vol. 50(C), pages 172-179.
    6. David Walker, 2014. "The Economic Potential for Forest-Based Carbon Sequestration under Different Emissions Targets and Accounting Schemes," Working Papers 2014.02, School of Economics, La Trobe University.
    7. Susaeta, Andres & Sancewich, Brian & Adams, Damian & Moreno, Paulo C., 2019. "Ecosystem Services Production Efficiency of Longleaf Pine Under Changing Weather Conditions," Ecological Economics, Elsevier, vol. 156(C), pages 24-34.
    8. Lundmark, Robert & Nolander, Carl & Olofsson, Elias, 2021. "Spatial production structure and input choices of forest products in Sweden," Forest Policy and Economics, Elsevier, vol. 128(C).

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