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Supply Response With Stochastic Technology And Prices In Australia'S Rural Export Industries

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  • Easter, Christopher D.
  • Paris, Quirino

Abstract

Risky output prices and production characterise Australian agriculture. Exports are vitally important, sometimes relying heavily on a particular market. In this study a model is developed to include explicitly both output price and technological risks as well as multiple output relationships. It is used to show that changes in US beef import policy generating a 10 per cent beef price fall could reduce Australian beef supply by 3.5 per cent and grazing industry net revenue by 8.4 per cent, despite some switching from beef production to other enterprises.

Suggested Citation

  • Easter, Christopher D. & Paris, Quirino, 1983. "Supply Response With Stochastic Technology And Prices In Australia'S Rural Export Industries," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 27(01), pages 1-19, April.
    • Handle: RePEc:ags:ajaeau:22824
    DOI: 10.22004/ag.econ.22824
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    References listed on IDEAS

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    1. John L. Dillon & J. R. Anderson, 1971. "Allocative Efficiency, Traditional Agriculture, and Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 26-32.
    2. Oscar R. Burt & Robert M. Finley, 1968. "Statistical Analysis of Identities in Random Variables," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(3), pages 734-744.
    3. Quirino Paris, 1979. "Revenue and Cost Uncertainty, Generalized Mean-Variance, and the Linear Complementarity Problem," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 268-275.
    4. Emilio M. Francisco & Jock R. Anderson, 1972. "Chance And Choice West Of The Darling," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 16(2), pages 82-93, August.
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    Cited by:

    1. 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.
    2. Kingwell, Ross, 1996. "Programming models of farm supply response: The impact of specification errors," Agricultural Systems, Elsevier, vol. 50(3), pages 307-324.
    3. Wall, Charles A. & Fisher, Brian S., 1988. "Supply Response and the Theory of Production and Profit Functions," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(03), pages 1-22, December.
    4. Graham R. Marshall & Kevin A. Parton & G.L. Hammer, 1996. "Risk Attitude, Planting Conditions And The Value Of Seasonal Forecasts To A Dryland Wheat Grower," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 40(3), pages 211-233, December.

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