bluuebunny/crossref_metadata_2025 huggingface dataset:
EFFICIENCY AND EQUITY CONSIDERATIONS IN THE DESIGN OF AGRICULTURAL TECHNOLOGY IN DEVELOPING COUNTRIES
Authors: Ryan James G.
Published: April 2012

The green revolution in developing countries magnified concern about the efficient allocation of agricultural research resources and the distributional consequences of alternative research resource allocation and technology design strategies. These concerns are being increasingly reflected in the planning, management and research activities of the international agricultural research centres. In this paper a description is given of how economists at one centre contributed their expertise to the ex ante analysis of some key issues in this complex milieu, such as the determination of research goals and priorities, the small‐large farm dichotomy or nexus, income distribution and employment effects, human nutritional considerations and farmer risk attitudes.
USING DIRECT QUESTIONING TO VALUE THE EXISTENCE BENEFITS OF PRESERVED NATURAL AREAS
Authors: Bennett Jeffrey W.
Published: April 2012

A major limitation to the effectiveness of benefit‐cost analyses of proposals involving natural ecosystems is the assertion of existence demand. Not only has confusion arisen regarding its exact definition but little has been done to establish its magnitude. Existence benefits are defined and an empirical study of the value a sample of Canberra residents places on the continued provision of the existence benefits of a particular ecosystem, Nadgee Nature Reserve, is outlined. It is concluded that while the measurement technique employed, the direct questioning of respondents, may be subject to a problem of response bias, it is capable of providing a reasonable estimate of these existence benefits. The average existence value per Canberra adult is at least $20, that is $2 per annum in perpetuity given a 10 per cent real interest rate.
BOOK REVIEWS
Authors: MORELLI EMERY A.
Published: April 2012

Book reviewed in this article:

Why Economists Disagree‐ The Political Economy of Economics. By KEN COLE, JOHN CAMERON and CHRIS EDWARDS.

Dangerous Currents: The State of Economics. By LESTER C. THUROW.

Reason in Human Affairs. By HERBERT A. SIMON.

Stubborn Survivors: Dissenting Essays on Peasants and Third World Development. By REX MORTIMERE. Edited by HERBERT FEITH and RODNEY TIFFEN.

The World Rice Market:. Structure, Conduct and Performance. By AMMAR SIAMWALLA and STEPHEN HAYKIN.

Farmers of Five Continents. By DON PAARLBERG.

Enterprise and the Scope of the Firm. By MORRIS SILVER.
AN EXPERIMENT IN MULTIATTRIBUTE UTILITY THEORY
Authors: Delforce Robert J. , Hardaker J. Brian
Published: April 2012

A version of multiattribute utility theory is evaluated as an aid to social decision making using an Australian case study. A multiattribute utility function is assessed over the descriptive, discrete decision alternatives of the decision problem rather than over the risky consequences of the attributes as in the standard approach. The evaluation is made first from the perspective of the decision analysts as a test of the feasibility of the method, and second, from the perspective of social decision makers as a test of the value of the analysis to them. Several difficulties arose in administering the procedure, and the decision makers were sceptical about the derived prescriptions. Nevertheless, the research findings appear to support the proposition that multiattribute utility theory should be viewed as more than merely a normative device for social decision making by experts.
CHANGING INSTITUTIONS, PROCESSES AND ISSUES IN THE FORMATION OF AUSTRALIAN AGRICULTURAL POLICY*
Authors: Campbell Keith O.
Published: April 2012

In this paper the effect of structural changes in the Australian economy on the determination of policy for agriculture is examined. The effectiveness of the unification of farm organisations is questioned and the threat to organised agriculture of new lobby groups and new governmental institutions is outlined. The role of wide‐ranging inquiries into the state of the agricultural economy is scrutinised. Attention is drawn to the effect on rural lobbying of the advent of 'government by consensus' under the Hawke Government and to the increasing militancy of farmers. It is shown that recent advocacy of greater centralisation of agricultural administration has no constitutional basis. It is concluded that the emerging problem of organised agriculture is to find an effective way to modify the impact on the industry of general economic policies and overseas economic developments rather than to deal with commodity‐specific legislation.
BOOK REVIEWS
Authors: MORELLI EMERY A.
Published: April 2012

Book reviewed in this article:

Economics Made Easy, Revised Edition. By BERT KELLY.

Farm Policy in Australia. By R. K. HEFFORD.

Australia and Argentina: On Parallel Paths. By TIM DUNCAN and JOHN FOGARTY.

The Economics of Production. By BRUCE R. BEATTIE and C. ROBERT TAYLOR.

Commodity Models for Forecasting and Policy Analysis. By WALTER C. LABYS and PETER K. POLLOCK.

Rural Financial Markets in Developing Countries. By J. D. VON PISCHKE, DALE W. ADAMSand GORDON DONALD
PLANT LOCATION ANALYSIS USING DISCRETE STOCHASTIC PROGRAMMING1*
Authors: Brown Colin G. , Drynan Ross G.
Published: April 2012

A plant location model with two major aspects is outlined. First, discrete stochastic programming is used to handle variability in supplies and demands. Second, the cost structure of plants is modelled in more detail and with more realism than is usual. Results from applying the model to the Queensland cattle slaughtering industry demonstrate the inappropriateness of using traditional deterministic plant location models to analyse problems with major stochastic elements. Deterministic models yield plant locations, sizes, throughputs, commodity flows and implications which differ markedly from those generated by stochastic models in which plant sizes and locations are optimally matched to variable fat cattle supplies. In addition, the traditional deterministic long‐run model overestimates the normative gains of industry rationalisation.
RESOURCE POLICIES, PROPERTY RIGHTS AND CONFLICTS OF INTEREST*
Authors: Izac A.‐M.N.
Published: April 2012

Chicagoan theories of and policies for unpriced natural resources have gathered momentum over the past twenty years and have reached a fair degree of acceptability among some agricultural economists and some governments. The critical evaluation of the logic, explanatory and predictive power of these theories, which is undertaken in this paper, shows that this acceptability is not well founded. It is demonstrated that these theories embody substantial logical shortcomings and rely on hypotheses which may be falsified. These limitations have important implications for Chicagoan resource policies. Game theory is used to show that Pareto optimality cannot be reached when Chicagoan policies are implemented by a government, contrary to the contention of Chicagoan economists.
COMMON PROPERTY, PRIVATE PROPERTY AND REGULATION THE CASE OF DRYLAND SALINITY
Authors: Quiggin John C.
Published: April 2012

The term 'common property' has frequently been misapplied to situations where no property rights exist. Common property rights have provided a workable alternative to private property in many historical situations. Common property concepts and institutions can also play a major role in analysing and responding to current environmental problems. In this paper, the problem of dryland salinity is examined and solutions based on common property, private property and regulation are compared.
A BAYESIAN FRAMEWORK FOR OPTIMAL INPUT ALLOCATION WITH AN UNCERTAIN STOCHASTIC PRODUCTION FUNCTION
Authors: Griffiths William E.
Published: April 2012

A Bayesian approach is used to provide a framework for optimal input allocation for a stochastic production function with uncertain parameters. The chosen production function is a single‐input version of a function which can exhibit positive or negative marginal risk. The sensitivity of optimal input allocation to the degree of risk aversion, the marginal risk parameter, and the assumed level of uncertainty about the parameters is examined. Using an example problem it is shown that parameter uncertainty will not always lead to a lower input level when a producer is risk averse. Some problems with the production function specification are uncovered, as is the incompatibility of some expected utility and stochastic assumptions.
WEAK SEPARABILITY AND A TEST FOR THE SPECIFICATION OF INCOME IN DEMAND MODELS WITH AN APPLICATION TO THE DEMAND FOR MEAT IN AUSTRALIA*
Authors: Alston Julian M. , Chalfant James A.
Published: April 2012

Most studies of the demand for meat in Australia have used some measure of total income or expenditure, but two recent studies have assumed weak separability of a meat group and used expenditure on the meat group instead. These specification differences are of interest to the extent that they affect the economic interpretation, goodness‐of‐fit, elasticity estimates, predictive performance or hypothesis tests in empirical demand equations. In this paper, non‐nested hypothesis testing procedures are used to test the alternative specifications of the income variable and the hypothesis of separability. The results favour the use of the expenditure variable implied by separability but are mixed concerning whether separability holds.
A FARM GROWTH MODEL FOR POLICY ANALYSIS IN AN EXTENSIVE PASTORAL PRODUCTION SYSTEM
Authors: Beck Anthony C. , Dent J.B.
Published: April 2012

The development of a simulation model of an extensive pastoral farming system to assist analysts in their assessment of government policy measures is described. The model was designed to simulate, over a number of years, the physical and financial operation of a sheep and beef production system typically found in the North Island hill country of New Zealand. By manipulating model parameters and data related to prices, costs, taxation and credit, a range of policies can be represented and their effects simulated. The model is used to undertake an ex post analysis of the farm‐level impact of the supplementary minimum price scheme in New Zealand and to project farm performance following the abolition of the scheme. Consideration is given to the use of the model to represent sheep and beef production systems elsewhere.
THE CURRENT ACCOUNT, MONETARY POLICY, MARKET SENTIMENT AND THE REAL EXCHANGE RATE: SOME IMPLICATIONS FOR THE FARM SECTOR
Authors: O'Mara L.P. , Wallace N.A. , Meshios Helen
Published: April 2012

The real effective value of the Australian dollar declined sharply between early 1985 and September 1986. 'Market fundamentals' associated with the deterioration in Australia's terms of trade and current account, and rising foreign debt levels are the commonly cited explanation for the decline. However, several other shorter term influences may have also contributed. Theoretical and empirical analysis indicates that market fundamentals might explain, at most, 20 percentage points of the 37 per cent decline in the rate over this period. Thus, a significant real appreciation would be expected over the medium term prior to, and quite independently of, any recovery in Australia's terms of trade in general or in world farm commodity prices in particular.
MARKETING AGENCIES AND THE ECONOMICS OF MARKET SEGMENTATION*
Authors: Martin S.K. , Zwart A.C.
Published: April 2012

Increasing importance is being attached to market segmentation strategies as a means of increasing producer returns. In this paper, a generalised model of price discrimination without supply control is developed to analyse the implications of optimal segmentation strategies for non‐homogeneous products. It is shown that the magnitude of producer returns is dependent on demand and supply conditions, with increases in returns falling as price elasticities of demand and supply increase. The model is applied to the New Zealand sheep meats industry to reveal that returns to producers from market segmentation strategies could be quite low in the long run.
SUBJECTIVE DISTRIBUTIONS AS ECONOMETRIC RESPONSE DATA
Authors: Griffiths William E. , Anderson Jock R. , Hamal K.B.
Published: April 2012

Analysis of actual observations of response processes is a routine procedure in applied econometrics but methods of dealing with purely subjective probability distributions as response 'data' have seemingly not hitherto been worked out. The models and methods developed here go some way to filling this void. They are illustrated by using information from a cross‐sectional study of sixty Nepalese small‐scale farmers. Means and variances of subjective probability distributions for rice paddy yields under different technologies are related to controlled inputs, such as fertiliser levels, and to relevant socio‐economic aspects of farmers themselves, such as technological knowledge and farm size.
ECONOMIC ANALYSIS OF ON‐FARM SOLUTIONS TO DRAINAGE PROBLEMS IN IRRIGATED AGRICULTURE
Authors: Dinar Ariel , Knapp Keith C.
Published: April 2012

Agricultural production in many semi‐arid areas over the world is affected by poor drainage and saline conditions. Optimal agricultural management can be considerably different under these conditions than in locations where these problems do not occur. A long‐run steady‐state model is developed to analyse several management strategies for a farm with limited natural drainage and no access to off farm facilities. The model is applied to a representative farm in California. Under optimal management, the results suggest relatively small evaporation ponds, a reduction in water application, and little change in cropping patterns. Some drainage reuse is optimal when only variable reuse costs are considered. Returns to land and management are positive in all cases considered and benefits from a free off‐farm facility are approximately $260/ha.
MEASURING PRODUCTIVITY CHANGE UNDER DIFFERENT LEVELS OF ASSISTANCE: THE AUSTRALIAN DAIRY INDUSTRY
Authors: Knopke Philip
Published: April 2012

The effects of different levels of protection on productivity measures are frequently ignored in economic analysis. In this paper. a procedure is developed to net out the effects of non‐marginal cost pricing on the traditional Tornqvist productivity measure. Total factor productivity in the dairy industry is estimated to have grown at a 1.5 per cent annual rate over the period 1967‐68 to 1982‐83. A state and regional analysis of the dairy industry showed that the Victorian industry had outperformed the New South Wales industry, a factor that was attributed to major policy differences between the two states.
A THEORETICAL DISCUSSION OF THE ECONOMIC EFFECTS OF BUFFER STOCKS AND BUFFER FUNDS
Authors: Simmons Phil
Published: April 2012

It has been established that the absence of risk markets justifies market intervention in principle. The form of intervention that has been discussed most widely in the literature is the buffer stock. This paper points out that other forms of intervention, specifically buffer funds, are likely to perform better. The analysis shows that buffer funds are likely to outperform buffer stocks because they address market failure more directly. A sub‐theme developed in this paper is that since buffer funds are enforced saving, it follows that policies that address capital market failure are likely to dominate buffer funds and buffer stocks in welfare terms.
SOLUTION OF SPATIAL TRADING SYSTEMS WITH CONCAVE CUBIC PROGRAMMING*
Authors: MacAulay T. Gordon , Batterham Robert L. , Fisher Brian S.
Published: April 2012

Standard spatial equilibrium activity analysis models, as developed by Takayama and Judge (1971), are based on linear supply and demand functions and fixed input‐output coefficients. Such models are suitable for multiple market level trading systems where the fixed input‐output coefficients are appropriate. A primal‐dual price form of these models is developed in which the assumption of constant per unit costs of transformation is relaxed. In the case when the average cost curves of transformation are quadratic in nature the problem becomes one that will be termed cubic programming (that is, a cubic objective function and linear and/or quadratic constraints) which is solved in a concave region of the solution space. In the paper, the formulation of a simplified spatial equilibrium model with quadratic average costs of transformation is presented and solved. A discussion of possible applications of such a model is also presented.
A MIXED INTEGER LINEAR PROGRAMMING EVALUATION OF SALINITY AND WATERLOGGING CONTROL OPTIONS IN THE MURRAY‐DARLING BASIN OF AUSTRALIA
Authors: Alaouze Chris M. , Fitzpatrick Campbell R.
Published: April 2012

Pollution of the River Murray by salt imposes costs on domestic and industrial users in Adelaide and to irrigators on the River Murray. Salt enters the Murray‐Darling system through saline ground water aquifers and from irrigation and drainage of saline land. Irrigation and drainage generate benefits from improved agricultural productivity and impose costs through increased salt loads to the Murray‐Darling system. The salinity of the River Murray can be reduced by pumping highly saline ground water into evaporation basins before it enters the River Murray. This paper presents a mixed integer linear programming model which is used to determine the mix of ground water interception schemes and land improvement schemes that minimises the net present value (over a time horizon of 30 years) of total Murray‐Darling Basin costs due to salinity and waterlogging. By varying a target salinity level, the mix of works that yields various salinity targets in the River Murray at minimum cost is obtained. The sensitivity of the optimal solution to prescribed changes in costs and benefits of projects and to a longer planning horizon is examined.
CHANGE, ADJUSTMENT AND THE ROLE OF SPECIFIC EXPERIENCE: EVIDENCE FROM SRI LANKAN RICE FARMING*
Authors: Ekanayake S.A.B. , Jayasuriya Sisira
Published: April 2012

Human capital comprising various components, such as different types of training, experience and skills, influences the capacity of economic agents to adjust to changing environments. We distinguish between formal education, general experience and various types of specific experience as determinants of adjustment to disequilibria in agriculture and demonstrate that their relative importance varies according to the nature of the changes facing the farmers. The results provide strong support for the importance of land‐specific experience even in 'modernising' situations.
EXPLAINING THE DISTRIBUTION OF QUOTA RENTS FROM US CHEESE IMPORTS
Authors: Hornig Ellen , Boisvert Richard N. , Blandford David
Published: April 2012

A theoretical model is outlined to illustrate how rents are generated from import quotas. The model is used to estimate rents from US cheese import quotas; rents are substantial. Relative rent capture by importers and exporters is explained by estimating an industrial organisation‐type model. Unequal market power is important in explaining the distribution of rents between importers and exporters. Exporters tend to maintain price‐cost margins and let importers capture a larger share as rent size increases.
UNDERWRITING ASSISTANCE TO THE AUSTRALIAN WHEAT INDUSTRY — AN APPLICATION OF OPTION PRICING THEORY
Authors: Bardsley Peter , Cashin Paul
Published: April 2012

For the ten crop seasons 1979‐80 to 1988‐89, returns to producers in the Australian wheat industry were underwritten by a government‐guaranteed price floor. Similar schemes operate in other rural industries (dairy, apples and pears, dried fruits). Although the underwriting provisions have only been triggered once (in the 1986‐87 season), the provision of this scheme has acted to reduce the risk normally associated with returns to producers of wheat in all years of its operation. This reduction in risk has been granted free‐of‐charge by the Commonwealth Government.

The guaranteed price can be viewed as a put option taken out by the Government on behalf of growers — it gives growers the option to sell to the Australian Wheat Board at this floor price. The aim of this paper is to apply to this underwriting arrangement the Black‐Scholes formula for valuing options, in order to estimate the cost that growers would otherwise have had to pay to obtain cover (through put options) equivalent to the guaranteed price. We also estimate the magnitude of this form of assistance to the industry, which (until now) has not been taken into account unless the returns to growers fell below the guaranteed price.
AN ECONOMIC RESPONSE MODEL OF HERBICIDE APPLICATION FOR WEED CONTROL
Authors: Pannell David J.
Published: April 2012

A biologically realistic model of crop yield response to herbicide application is presented. It includes functions for weed mortality from herbicide application and yield loss due to surviving weeds. The optimal herbicide rate and two types of decision thresholds are derived theoretically and illustrated with empirical examples. Responses of the various decision criteria to changes in parameters are also examined theoretically and empirically. A multidimensional threshold for weeds based on weed density and weed‐free yield is presented. The issue of farmers using other than officially recommended herbicide rates is discussed.
COMPARATIVE FORECAST ACCURACY IN THE NEW SOUTH WALES PRIME LAMB MARKET
Authors: Vere David T. , Griffith Garry R.
Published: April 2012

The market for Australian prime lamb is characterised by high production seasonality and a highly competitive retail demand. Because these factors often translate into substantial market variability, regular forecasts of supply and demand are important requirements of lamb market participants. There has been some forecasting activity in the state and national lamb markets but it has been a somewhat controversial activity. This paper assesses the comparative forecast accuracy of a range of methods in the New South Wales lamb market. The results indicate that no single method is clearly superior in all situations and the greatest scope for improving forecast accuracy in the New South Wales lamb market is through the use of combined econometric and naive approaches.
INVESTING IN GRAIN STORAGE FACILITIES UNDER FLUCTUATING PRODUCTION*
Authors: Brennan Donna C. , Lindner Robert K.
Published: April 2012

Fluctuating annual harvest volumes create a peak load problem in the provision of grain storage capacity. There are a number of technologies for handling and storing grain, ranging from capital intensive to labour intensive methods. Optimal provision of grain storage capacity can therefore be analysed in the framework of the conventional peak load pricing model. An investment model of grain storage is outlined and the optimal technology choices are determined according to simple investment roles. Capacity of the more capital intensive storage types should be only provided if the extra capital cost is justified by the saving in operating costs, which depends on the expected utilisation of storage. Some level of supply failure is justifiable. An examination of grain storage costs in Western Australia revealed that horizontal storage was the best technology for dealing with most grain storage demand at sites where turnover is limited In the receival period. This concurs with the general investment choices in Western Australia. However, there appears to be a high level of overcapacity at many sites, implying that the cost of supply failure is perceived to be greater than the marketable value of the grain.
THE RETURNS TO INVESTMENT IN RESEARCH ON AUSTRALIAN WOOL PRODUCTION*
Authors: Scobie Grant M. , Mullen John D. , Alston Julian M.
Published: April 2012

A production function approach is used to estimate growth in farm productivity in the Australian wool industry from an estimated level of expenditure on wool production R & D. A market equilibrium model of the wool industry is then used to measure the share of total benefits from this productivity growth accruing to Australia and its wool growers. A net return is estimated after allowing for lags in the development and adoption of technology.
AN APPROACH TO THE ECONOMETRIC ESTIMATION OF ATTITUDES TO RISK IN AGRICULTURE: COMMENT
Authors: Bar‐Shira Ziv
Published: April 2012

Bardsley and Harris (1987) test empirically the effects of changes In deterministic wealth and random income on the measure partial risk aversion. The paper, which is otherwise well written, failed to impose the relationship between the two effects and estimated them independently. Consequently, inconsistent estimates were derived for the elasticities of the measure of partial risk aversion with respect to wealth and to income. The purpose of this comment is to derive that relationship theoretically and to point out the resulting inconsistencies in the original paper.
HEDONIC PRICING FOR A COST BENEFIT ANALYSIS OF A PUBLIC WATER SUPPLY SCHEME*
Authors: Coelli Tim J. , Lloyd‐Smith J. , Morrison D. , Thomas J.
Published: April 2012

During the 1950s and 1960s pipelines were built to provide water to many farms in the central wheatbelt of Western Australia using public funds. The resulting network has become known as the Comprehensive Water Supply Scheme. The expansion of the Scheme is currently under consideration. An ex ante cost benefit analysis of the proposed expansion is undertaken. An earlier analysis which focused on the benefits of the reduced necessity to cart water was rejected by farmer groups because of the inability of the analysis to properly account for domestic benefits and risk reduction. To overcome these criticisms a hedonic model of farm land values is formulated in which the independent variables are the characteristics of a property, including whether or not the property is connected to the Scheme. The implicit marginal price (or value) of Scheme connection is then derived. An advantage of this technique is that it estimates the value that the farmers allocate to Scheme water in the market place. The conclusion is that the benefits of Scheme water are considerably less than the costs.
LIVESTOCK PRODUCTION POLICIES AND MEAT PROCESSING MARGINS: THE CASE OF NEW ZEALAND, 1967‐1988*
Authors: Griffith Garry R. , Moore Walter B.
Published: April 2012

The New Zealand export meat industry has been through a considerable number of changes in the 1980s. The deregulation of export slaughter facilities, Supplementary Minimum Prices, Producer Board intervention, declining livestock numbers and domestic cost pressures have all affected the performance of the domestically based processing sector. Major changes in market access and demand have influenced off‐shore marketing operations, particularly for sheepmeats. Additionally, there has been a change in the type of meat exported with a greater proportion of further processed product shipped in recent years. As an example of the impact of these developments on livestock producers, the producer share of the United Kingdom wholesale market return for a representative prime lamb carcase has fallen from 40 per cent in 1978 to 25 per cent in 1988.

In this article the pattern of intervention in the New Zealand pastoral meat industries from the mid‐1960s is detailed, emphasising the different environments of the beef and sheepmeat enterprises. Then the principal factors influencing domestic processing margins for these products are empirically examined. Alternative model specifications and alternative estimation techniques are compared and contrasted. The results of these analyses are discussed in terms of the historical patterns of assistance and structural change, and in terms of current rationalisation pressures on the meat processing sector.
THE EFFECTS OF FLEXIBLE EXCHANGE RATES ON AUSTRALIAN WOOL PRICES*
Authors: Phillips Shauna , Bewley Ronald A.
Published: April 2012

The implication of price stabilisation under a volatile exchange rate is an increasingly volatile price denominated in a foreign currency. Time series analysis is used to model the relationship between exports, prices and AWC stocks. This model is used to assess the distribution of the impact of exchange rate shocks on prices denominated in local and foreign currencies. It is found that the AWC has significantly reduced the impact of exchange rate shocks on domestic prices.
FACTOR MARKET INCIDENCE OF AGRICULTURAL TRADE LIBERALIZATION: SOME ADDITIONAL RESULTS
Authors: Hertel Thomas W.
Published: April 2012

Liberalization of trade implies changes in producer prices, which has consequences for farm income, agricultural employment and asset values. The relative incidence of the effect of changes in prices on fixed factors depends on the rclative magnitude of the Morishima elasticities of substitution in agricultural production.
FROM CONSUMER CHOICE PROCESS TO AGGREGATE ANALYSIS: MARKETING INSIGHTS FOR MODELS OF MEAT DEMAND
Authors: Piggott Nicholas E. , Wright Victor E.
Published: April 2012

The presence or absence of structural change in meat demand is critical to marketing decision making. If change is present, marketing bodies need to know what underlies the change so that the most appropriate response can be identified. Marketing theory is considered as a possible source of more explicit models of demand which may lead to a better understanding of consumption patterns and structural change.
THE SUPPLY OF NON‐DEGRADED AGRICULTURAL LAND*
Authors: Clarke Harry R.
Published: April 2012

Profitability increases because of favourable product or factor price changes provide incentives for profit‐maximising farmers, who use soils in conjunction with other cooperant inputs, to increase their investment in the preservation of soil‐quality, whenever there exist economically viable technologies for preserving soils. However, when such technologies do not exist, regardless of whether farmers utilise soils as non‐renewable or renewable resources, such profitability increases are associated with a long‐run deterioration in soil quality.
DO INCREASED COMMODITY PRICES LEAD TO MORE OR LESS SOIL DEGRADATION?
Authors: LaFrance Jeffrey T.
Published: April 2012

In this paper, a dynamic economic model is used to analyze the conflicting impacts of crop increasing/land degrading inputs with those of soil conserving/crop reducing inputs in problems of soil degradation in agriculture. Soil is a renewable resource that is generated naturally at a slow, essentially autonomous rate. Cultivation enhances crop production and degrades the soil, while conservation is unproductive for the crop but improves the soil resource. If the effects of cultivation dominate the effects of conservation in the soil dynamics, an increase in the price of the crop accelerates the rate of soil degradation In the short‐run and decreases the long‐run stock of the soil resource. On the other hand, if the effects of conservation dominate the effects of cultivation, an increase in the price of the crop decelerates the rate of soil degradation in the short run and increases the long‐run stock of the soil resource. It is shown that subsidies on conservation activities or taxes on cultivation intensity may well decrease the long‐run soil stock, although strong conditions must be satisfied for either of these results to hold. It also is shown that a reduction in the real discount rate or a direct per unit tax on soil losses is certain to increase the long‐run soil stock and reduce the short‐run rate of soil degradation.
A GAME THEORY ANALYSIS OF MANAGEMENT STRATEGIES FOR THE SOUTHERN BLUEFIN TUNA INDUSTRY
Authors: Klieve H. , MacAulay T. Gordon
Published: April 2012

Game theory offers an alternative approach to standard means of resource assessment which can be of value in the definition and assessment of policy options for competing parties. Using a Nash co‐operative game it has been possible in this paper to show the significance of fishing strategies for southern bluefin tuna which take into account the age distribution of the catch. Assuming Japan and Australia act according to a cooperative game then the optimal fishing strategy was found to involve Australia avoiding the fishing of the very young cohorts and Japan taking a moderate catch in subsequent older age classes but not the oldest of the age classes. Sub‐optimal strategies were also presented and evaluated along with an indication of the level of biomass associated with different strategies. It was concluded that harvesting policies need to be developed both according to weight of fish harvested and age class.
PRICE ARBITRAGE BETWEEN QUEENSLAND CATTLE AUCTIONS
Authors: Williams Christine H. , Bewley Ronald A.
Published: April 2012

In a competitive market with free information flows, spatial arbitrage will ensure that average prices at geographically separate markets will move in unison. The speed of adjustment is related to information flows between markets; if adjustment lags exist, there may be opportunities for arbitragers to gain. The transmission of price information is modelled using Johansen's procedure and the existence of long‐run arbitrage opportunities is investigated. An innovation analysis is used to examine the varying responses to changes in prices at spatially separate markets.
AGRICULTURE IN A WORLD OF TRADING BLOCS
Authors: Josling Timothy E.
Published: April 2012

The recent trend towards the negotiation of free trade areas has potentially important implications for agriculture. Agricultural trade will increasingly be influenced by the treatment of agriculture within free‐trade areas and other regional trade associations. Such blocs will have to deal internally with many of the same issues as face the GATT. This will tend to reinforce the move to less trade‐disruptive domestic policies. Moreover, independent trade policies become difficult to maintain in a trade bloc, even if there is no common external tariff. This could lead to harmonisation of external policies. As a consequence, the inclusion of agriculture in free‐trade areas could be an important part of overall trade liberalisation in years to come.
PRICE‐LINKED FARM AND SPATIAL EQUILIBRIUM MODELS
Authors: Batterham Robert L. , MacAulay T. Gordon
Published: April 2012

The integration of detailed farm supply models with the basic spatial equilibrium model, is outlined. The direct linking of farm linear programming models with the spatial equilibrium model is achieved so that both prices and quantities are endogenous. Both the farm model and the spatial equilibrium model must be specified in primal‐dual form to make the linkages. Limited details of the use of such a model in a study of a segment of the grain handling system in New South Wales are presented along with conclusions relating to the pricing of grain handling services.
TRADE AND THE ENVIRONMENT: EFFICIENCY, EQUITY AND SOVEREIGNTY CONSIDERATIONS
Authors: Sinner Jim
Published: April 2012

The Uruguay Round trade agreement includes a new programme of work to examine the relationship between trade and environmental policies. Environmental groups remain suspicious that trade liberalisation will undermine or discourage improvements in environmental standards. In this paper, the use of trade measures to protect producers from competition with goods produced under less stringent environmental standards is examined. It is shown that such measures will not improve national welfare, and may undermine environmental policies. Failure of a government to enact appropriate environmental policies constitutes an implicit subsidy, and equity considerations suggest that this will continue to create pressure for changes to the GATT to protect producers who are meeting higher standards.
COORDINATING PRODUCTION AND DISPOSAL OF COMMODITY STOCKPILES WITH APPLICATION TO AUSTRALIA'S WOOL INDUSTRY
Authors: Hertzler Greg
Published: April 2012

Following the dismantling of a price‐support program, a central bureaucracy is left with a commodity stockpile to dispose. It happened with wheat and feed grains in the U.S. in 1986 and wool in Australia in 1991. It soon may happen in Europe with grains, manufactured dairy products and other commodities which have supported prices. Obvious policies include privatising the stockpile, disposing of the stockpile by a central bureaucracy and quarantining the stockpile from the market. Each policy imposes constraints on disposal based, perhaps, on judgments of political acceptability to producers and government. In this article, optimal rules for production and disposal are derived and solved and a new policy is proposed. Then the model is applied to the disposal of Australia's wool stockpile. Results show that centralised disposal will almost always be preferred to privatisation of the stockpile. Centralised disposal is also preferred to quarantining the stockpile if interest rates are high, but quarantining is preferred if interest rates are low. Centralised disposal and quarantining are not optimal, however. Optimal production and disposal combines the efficiency of privatisation with the market power of centralised disposal. To achieve this, the property rights to the stockpile can be redefined using payment‐in‐kind certificates and individual transferable entitlements. The payment‐in‐kind certificates assign ownership of the stockpile to individual producers who then make both production and disposal decisions. The individual transferable entitlements allow the industry to produce efficiently and extend market power from the central bureaucracy to producers. For the Australian wool stockpile, optimal production and disposal would benefit the industry by an estimated $2.7 billion.
EXPORT SUPPLY RESPONSE OF THE AUSTRALIAN CITRUS INDUSTRY*
Authors: Gunawardana P.J. , Kidane Habtom , Kulendran N.
Published: April 2012

A model of export supply response of the Australian citrus industry is developed and estimated using cointegration and error correction techniques and quarterly data for the period 1983 to 1993. The estimates suggest that, even in the long run, the supply of citrus exports is inelastic with respect to relative price. The results also show that the adjustment of export supply to changes in relative price is not instantaneous, the domestic production capacity has a significant positive impact on export supply, and export supply in the June quarter in each year is significantly lower than in other quarters.
A COMMENT ON KLIEVE‐MACAULAY'S SOUTHERN BLUEFIN TUNA GAME
Authors: Simmons Phil , Wallace Lee
Published: April 2012

Klieve and MacAulay (1993) (KM) analyse bargaining between the Australian and Japanese Southern Bluefin Tuna (SBT) industries using game theory. The KM model is a Nash equilibrium with symmetrical information, threat functions and a set of biological constraints. When we attempted to include the New Zealand SBT industry as a player in the KM model, we discovered important shortcomings in it. In this comment, we outline three major shortcomings in the KM model and propose an alternative model of a Nash equilibrium for the SBT industry.
ECONOMIES OF THROUGHPUT AND TRANSPORT BOTTLENECKS IN GRAIN DISTRIBUTION SYSTEMS
Authors: Brennan Donna C.
Published: April 2012

In this paper, a model is presented which shows the relationship between country grain storage costs and transport bottlenecks that exist in the harvest period. It is shown that transport bottlenecks limit the amount of grain that can be transported from receival points in the peak receival period. This constraint means that the cost of operating country receival points is high because the turnover of storage capacity is limited. However, system costs can be reduced by focusing the peak transport task at sites that are less intensive users of scare transport capacity. This allows more grain to be transported out of the system in the peak period, decreasing the need for costly long term storage at country sites.

In the longer term, differences in the intensity of transport use means that optimal levels of investment in storage capacity (relative to grain receivals) will differ between sites. Relatively more storage should be constructed at sites that are intensive users of transport capacity (eg. those sites that are furthest from the port). Less storage capacity is needed at sites that are less intensive users of transport because a large depot‐to‐port transport task will be concentrated at these sites in the peak period.
PRODUCTION STRUCTURE AND THE AUSTRALIAN SAWMILLING INDUSTRY*
Authors: Bigsby Hugh R.
Published: April 2012

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.
RESPONDENTS TO CONTINGENT VALUATION SURVEYS: CONSUMERS OR CITIZENS (BLAMEY, COMMON AND QUIGGIN, AJAE 39:3) — A COMMENT
Authors: Rolfe John , Bennett Jeffrey W.
Published: April 2012

Blarney, Common and Quiggin (1995) (BCQ) suggest that responses to contingent valuation (CV) questionnaires may be framed either according to the extent of individual benefits received, or according to wider views about ethical frameworks, impacts on other people, or desired societal levels. They characterise the individual benefit approach as a consumer model, and responses indicating wider concerns as citizen preferences. Citizen value responses are held to invalidate the economic assumptions underlying the use of CV. Hence, they hypothesize that the incorporation of CV results into benefit‐cost analysis is problematic.

In this comment we suggest that there are several flaws with the citizen value hypothesis. These can be grouped into arguments about the existence of citizen values based on ethical or altruistic grounds, and arguments about the identification of citizen values.
CONGESTION MODELS WITH CONSISTENT CONJECTURES
Authors: Holloway Garth J.
Published: April 2012

This paper demonstrates that, in situations in which a cumulative externality exists, the basic nature and extent of resource misallocation may be substantially less than we imagine. This conclusion stems from deriving consistent conjectures in a unified framework in which congestion is present. Experiments support the conclusion that, when numbers of agents are small, when there is little heterogeneity among them, and when they have the opportunity to observe each other during repeated experiment, the market allocation may be efficient.
THE AUSTRALIAN AGRICULTURAL ECONOMICS PROFESSION: AN APPRAISAL OF SOME CURRENT TRENDS*
Authors: Ahmadi‐Esfahani Fredoun Z. , Bonnor Kylie A.
Published: April 2012

Using the results of the first part of their 1994 membership survey, Ahmadi‐Esfahani and Brakey (1996) examined the structure, conduct and performance of the Australian Agricultural and Resource Economics Society qualitatively. This paper extends that analysis by appraising some current trends in the Australian agricultural economics profession quantitatively. It concentrates on the second part of the survey to address a number of fundamental questions. A comparison of the US and Australian agricultural economics professions is made. The implications of the analysis for the product mix of the Society are explored.
AGRICULTURAL TRADE LIBERALISATION AND THE URUGUAY ROUND*
Authors: Tanner Carolyn
Published: April 2012

With the Punta del Este Declaration, agriculture was accorded prominence in the GATT negotiations and, for the first time, national support policies were on the agenda. In this paper, the progress of the negotiations on agriculture is reviewed in an attempt to understand the factors which shaped the final outcome and to assess the likely impact of the round on liberalising agricultural trade. Although the immediate impact is likely to be modest, the round will provide longer term benefits to agricultural trade through the extension of the GATT rules‐based system to agriculture. The framework which has been laid should provide a sound basis for future negotiations. Within the multilateral framework, the pace of change is a function of the willingness of all parties to compromise and this is evident in the Uruguay Round's outcome which reflects the European Union's agricultural reform agenda.
BOOK REVIEWS
Authors: MORELLI EMERY A.
Published: April 2012

Book reviewed in this article:

EC Agricultural Policy for the 21st Century, European Economy, Report No. 4

Sacred Cows and Hot Potatoes, by WILLIAM P. BROWNE, JERRY R. SKEES, LOUISE. SWANSON, PAUL B. THOMPSOANN D LAURIAN J. UNNEVEH

Risk Analysis in Dryland Farming Systems. By JOCK R. ANDERSON and JOHN L. DILLON.

Methods for Development Work and Research: A Guide for Practitioners. By BRITHA MIKKELSEN
TELECARE, REMOTE MONITORING AND CARE
Authors: DRAPER HEATHER , SORELL TOM
Published: April 2012

Telecare is often regarded as a win/win solution to the growing problem of meeting the care needs of an ageing population. In this paper we call attention to some of the ways in which telecare is not a win/win solution but rather aggravates many of the long‐standing ethical tensions that surround the care of the elderly. It may reduce the call on carers' time and energy by automating some aspects of care, particularly daily monitoring. This can release carers for other caring activities. On the other hand, remote and impersonal monitoring seems to fall short of providing care. Monitoring may be used to help elderly users retain independence. But it may also increase the amount of information which flows from users to carers, which can result in a form of function‐creep that actually undermines independence.
Total hip arthroplasty inHIV‐infected patients: a retrospective, controlled study
Authors: Tornero E , García S , Larrousse M , Gallart X , Bori G , Riba J , Rios J , Gatell JM , Martinez E
Published: April 2012

Background

AlthoughHIV‐infected patients are at greater risk of presenting with ischaemic necrosis of the femoral head, there have been concerns about whether total hip arthroplasty (THA) may have worse outcomes than expected.

Methods

From theOrthopedic andTraumaSurgery database we identified all patients who had undergoneTHAbecause of ischaemic necrosis of the femoral head fromJanuary 2001 untilMarch 2010. Patient's diagnosis ofHIVinfection was confirmed at the time of arthroplasty by cross‐matching with theHIVunit database. For everyTHAinHIV‐infected patients, twoTHAs in patients not known to beHIV‐infected, with the same diagnosis of ischaemic necrosis of the femoral head and having undergone surgery over the same period, were randomly selected.THAs were compared inHIV‐ and non‐HIV‐infected patients for surgical procedure, in‐patient stay and long‐term prognosis.

Results

There were 18THAs in 13HIV‐infected patients and 36THAs in 27 non‐HIV‐infected patients. No significant differences were observed in the mean time spent in surgery (106vs.109 minutes, respectively;P = 0.66), the need for red cell transfusion (1vs.4, respectively;P = 0.48) or the mean duration of hospitalization (7.8vs.9.4 days, respectively;P = 0.48). The two groups showed similar postoperative functional results, which were maintained until the end of the follow‐up period (median 3.3 years in the HIV‐positive group and 5.8 years in the HIV‐negative group).

Conclusion

Our study suggests that the outcome ofTHAinHIV‐positive patients is not worse than that ofHIV‐negative patients, although future research on larger numbers of patients is required to confirm this.