Measuring the Impact of Staple Strength-Enhancing Technologies on Australian Wool Producer Profits: A Duality-Based Approach
Wool tenderness is a significant problem in Australia, especially in areas where sheep graze under highly seasonal conditions. In this study, a duality-based modeling framework is implemented to assess the economic impact of staple strength-enhancing research on the profits of Australian woolgrowers. Within this framework, a normalized quadratic profit function is specified and estimated. The model is based on a number of fundamental characteristics of the Australian wool industry and the staple-strength enhancing technology being assessed. The model consists of a system of equations that are specified in terms of effective, rather than actual, prices. The interrelationships between the netputs are allowed for in the model in a manner that is consistent with the theoretical restrictions that arise as a result of assuming profit maximization, ensuring that the welfare calculations are unambiguous.
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- John D. Mullen & Julian M. Alston & Michael K. Wohlgenant, 1989.
"The Impact Of Farm And Processing Research On The Australian Wool Industry,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 33(1), pages 32-47, 04.
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