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Producer Price Equalization

  • Alston, Julian M.
  • Freebairn, John W.

Most previous studies of home consumption pricing and producer price equalisation schemes have concentrated on static economic surplus effects under an assumption of a perfectly elastic export demand. This paper compares the effects of different types of producer price equalisation schemes with free trade in the wheat, milk and egg industries allowing for a downward sloping export demand. Average values and variances of prices, quantities, revenues, and economic surplus measures are estimated for each policy in a simulation model allowing a range of values for elasticities of supply and demand, market shares, and variability of supply and export demand. The stabilisation effects of equalisation schemes are evaluated using these estimates.

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File URL: http://purl.umn.edu/12270
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Article provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.

Volume (Year): 56 (1988)
Issue (Month): 03 (December)
Pages:

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Handle: RePEc:ags:remaae:12270
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  1. Myers, Robert J. & Piggott, Roley R. & MacAulay, T. Gordon, 1985. "Effects Of Past Australian Wheat Price Policies On Key Industry Variables," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 29(01), April.
  2. Cronin, M.R., 1979. "Export Demand Elasticities With Less Than Perfect Markets," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(01), April.
  3. Massell, Benton F, 1969. "Price Stabilization and Welfare," The Quarterly Journal of Economics, MIT Press, vol. 83(2), pages 284-98, May.
  4. J. W. Longworth, 1966. "The Australian Wheat Industry Stabilization Scheme: An Analytical Model," The Economic Record, The Economic Society of Australia, vol. 42(1-4), pages 244-255, 03.
  5. R. M. Parish, 1962. "The Costs Of Protecting The Dairying Industry," The Economic Record, The Economic Society of Australia, vol. 38(82), pages 167-182, 06.
  6. Scandizzo, Pasquale Lucio & Hazell, Peter B.R. & Anderson, Jock R., 1983. "Producers' Price Expectations and the Size of the Welfare Gains from Price Stabilisation," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 51(02), August.
  7. Houck, James P., 1973. "Some Aspects Of Income Stabilization For Primary Producers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 17(03), December.
  8. Longworth, John W., 1967. "The Stabilization And Distribution Effects Of The Australian Wheat Industry Stabilization Scheme," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 11(01), June.
  9. M.R. Cronin, 1979. "Export Demand Elasticities With Less Than Perfect Markets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 23(1), pages 69-72, 04.
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