Some Circumstances In Which Price Stabilization By The Wool Commission Reduces Incomes
Stabilization of wool prices (which is partially achieved by the Wool Commission) may reduce the average annual net income (surplus) of growers and also of manufacturers of wool. The argument that the surplus of growers may be reduced is based upon Massell's extension of Oi's hypothesis. The possibility of falls in the surplus of manufacturers if wool prices are stabilized has a different basis. If wool prices are stabilized by buffer stocks, manufacturers find that their supplies are more variable than in the absence of controls. Consequently, they experience greater average annual cost if their marginal operating costs are increasing. Unless there are substantial revenue gains to processors, their surplus falls. The argument is also applicable to buffer stock schemes for other primary products.
Volume (Year): 16 (1972)
Issue (Month): 02 (August)
|Contact details of provider:|| Postal: |
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tisdell, Clem, 1970. "Price Instability and Average Profit," Oxford Economic Papers, Oxford University Press, vol. 22(1), pages 1-12, March.
- Alan A. Powell, 1960.
"Production And Income Uncertainty In The Wool Industry: An Aggregative Approach,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 4(1), pages 86-96, 06.
- Powell, Alan A., 1960. "Production And Income Uncertainty In The Wool Industry: An Aggregative Approach," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 4(01), July.
- A. A. Powell & K. O. Campbell, 1962. "Revenue Implications Of A Buffer‐Stock Scheme With An Uncertain Demand Schedule," The Economic Record, The Economic Society of Australia, vol. 38(83), pages 373-385, 09.
When requesting a correction, please mention this item's handle: RePEc:ags:ajaeau:22802. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.