bluuebunny/crossref_metadata_2025 huggingface dataset:
LAND TENURE IN THE CYPRESS PINE AREAS OF NORTH‐WESTERN NEW SOUTH WALES
Authors: Sinden Jack A. , Kingma O.T.
Published: April 2012

In New South Wales there are one million acres of land bearing cypress pine and held under lease from the government. This land is suitable for the joint production of timber and livestock or for timber production alone. Alternatively, the timber can be harvested to provide capital for property development. Farm management plans have, however, been constrained by the land tenure policy which aims to promote both closer settlement and timber production. In this paper the opportunity costs of the current tenure system are evaluated against the freehold situation. The conditions which favour either specialized timber production or the joint production of timber and livestock are examined. Finally, the cost of achieving a timber production target is examined in terms of loss of income to the individual grazier and the nation.
EVALUATION OF THE EFFICIENCY OF RESOURCE USE ON FARMS AND THE WELFARE OF FARM PEOPLE
Authors: Standen B.J.
Published: April 2012

Studies evaluating efficiency of resource use on farms and farmer welfare have commonly failed to specify the precise nature of problems often described in terms such as 'low‐income'. Hence superior, alternative welfare and resource use positions, of interest to the policy formulator, are inadequately specified. Additionally, criteria used in these studies have often been invalid or inappropriate. This paper examines the theoretical and operational bases of efficiency and welfare criteria.
CHANCE AND CHOICE WEST OF THE DARLING
Authors: Francisco Emilio M. , Anderson Jock R.
Published: April 2012

Twenty‐one pastoralists in the West Darling region of New South Wales were interviewed to gain an understanding of the attitudes of managers in this high‐risk pastoral area to uncertain prospects. It was found that pastoralists had no difficulty in specifying subjective probabilities but in modifying probabilistic information they were conservative relative to the 'correct' revision implied by Bayes' Theorem. All the surveyed pastoralists were non‐indifferent to risk, as evidenced by their non‐linear utility functions for gains and losses.
RANDOM THOUGHTS ON SOME PROBLEMS OF PROFESSIONAL COMMUNICATION*
Authors: Burns E.O.
Published: April 2012

Within the profession of agricultural economics are found academics, government economists, farm organization economists, and others. Although the profession is based on general acceptance of principles and judgements, the outlook and activities of an individual are conditioned by his occupational status. Employment affiliations give rise to certain restraints and strains to communication between functional groups. The paper examines this problem, and presents a case for better understanding between the major institutional groups.
ASSESSMENTS OF THE RELATIVE VALUES OF COMPOUND NITROGEN‐PHOSPHORUS FERTILIZERS FOR WHEAT PRODUCTION
Authors: Colwell J.D.
Published: April 2012

A general procedure is developed for calculating optimal rates of application of compound fertilizers, containing several nutrients in fixed composition. The calculations are based on response surface models that have been obtained with single nutrient fertilizers. The relative values of alternative compounds can be assessed from the increases in profit that result from their use at optimal rates and this is preferable to simply comparing fertilizer compositions with that of an ideal mix of single nutrient fertilizers. The relative values of a range of standard nitrogen‐phosphorus fertilizers are assessed for wheat production in southern New South Wales. The results indicate the need for a compound with a low nitrogen/phosphorus ratio of about 0.5. For the range of fertilizers considered it is concluded that it will generally be preferable to use superphosphate, supplementing with nitrogen fertilizer where N deficiency is suspected. The assumptions required for the calculation of optimal fertilizer rates are discussed.
SOME ASPECTS OF INCOME STABILIZATION FOR PRIMARY PRODUCERS
Authors: Houck James P.
Published: April 2012

The objectives of this paper are two‐fold. The first is to discuss the basic economics of an aggregate industry income stabilization policy for primary producers. The second is to examine post‐World War II income instability in Australian wool, wheat, and beef and to apportion it into its price and output components. This analysis provides a basis for discussing income stabilization in the Australian context.
A QUARTERLY MODEL OF AGRICULTURAL INVESTMENT IN AUSTRALIA*
Authors: Fisher Brian S.
Published: April 2012

The aims of this study were (a) to attempt to develop a quarterly model to explain aggregate farm investment in Australia, and (b) to examine the concept of the implicit rental price of capital services as a method of taking account of taxation concessions in an investment equation.
AN INPUT‐OUTPUT VIEW OF AGRICULTURE IN PAPUA NEW GUINEA
Authors: Parker M.L.
Published: April 2012

Despite the dependence of the economy of Papua New Guinea upon plantation and smallholder agriculture, little has been known of the inter‐relationships which exist between agriculture and the remainder of the economy, or of the changes which would follow from implementation of the official development programme. In this article, a recently completed input‐output table is used to quantify these relationships in 1970 and to project changes over the period to 1978.
TWO SUGGESTED ADJUSTMENTS IN FARM INCOME MEASUREMENT USING TAXATION DATA*
Authors: Partridge A.J.S. , Musgrave Warren F.
Published: April 2012

The paper sets out two adjustments for taxation data when income distribution is relevant. The adjustments are used on income series for primary producers and wholesale‐retail trading and results compared. Little difference is found between the two income series though the latter, years show the wholesale‐retail traders series continuing on an upward trend, while the primary producers series appears to climb at a slower rate or has flattened out. An examination of income led to similar conclusions though these figures seem to imply that in both industries there is a hard core of poverty, individuals who can neither raise their income nor move out of the industry.
CHANGES IN THE TERMS OF TRADE FOR AGRICULTURE: NEW PLATEAU OR NEW PRECIPICE*
Authors: Harris Stuart
Published: April 2012

This paper looks at the recent boom in agricultural commodity prices to see to what extent the changes these prices reflect are of a structural rather than short term nature. It concludes that they are essentially short term: a lagged supply response to the agricultural depression of 1970 and 1971; the coincidence of normal commodity cycles for several commodities; an unusual coincidence of adverse seasonal conditions in major producing areas, particularly the U.S.S.R.; and an unprecedented upswing in world economic activity. Nevertheless, there are a number of factors which suggest that, other than possibly in short term disequilibrium situations, agricultural commodity prices will not decline to previous levels: worldwide inflation; redirection in world agricultural support policies; and the energy crisis. Many of these factors win also influence prices of manufactured goods and hence the terms of trade. After considering the problems of world food supplies and continued growth in world population, the paper suggests that there is little evidence of a major structural change in the market for agricultural commodities. Rather, it points to a return to the previous situation where there is a slight tendency for the terms of trade to move against agriculture.
SHORT RUN PRICE CYCLES IN THE SYDNEY WOOL FUTURES MARKET
Authors: Hunt B.F.
Published: April 2012

Evidence of systematic short run price movements in Sydney wool futures prices is presented. Traders' reaction to market uncertainty is suggested as a rationale of wool futures price periodicity. There is also a discussion of the significance of the cycle with regard to the efficiency of the market.
A NOTE ON VICTORIAN WHEAT YIELD DISTRIBUTIONS
Authors: Ryan Timothy J.
Published: April 2012

An analysis of wheat yield series from ten localities in Victoria was undertaken to investigate for independence of observations and to test for normality of the distributions. The conclusion was reached that Victorian wheat yield series are composed of random observations and form frequency distributions which display slight negative skewness. The situation may be different for other crops or for wheat in other areas.
EFFECTS ON FARM INCOMES AND RURAL LABOUR OF A RELATIVE INCREASE IN WAGES*
Authors: Ryan James G. , Duncan Ronald C.
Published: April 2012

We use the concept of the elasticity of farm incomes with respect to changes in input prices to analyse the effects of a large increase in relative wages on selected measures of farm incomes. In order to estimate the elasticity of farm incomes we have to estimate elasticities and cross‐elasticities of demand and supply for farm labour and capital. The estimates of elasticity of demand for operator and hired labour allow us to calculate the impact of a rise in wages on numbers of farmers and hired labour employed in agriculture.
AN ADAPTIVE CONTROL APPROACH TO AGRICULTURAL POLICY*
Authors: Freebairn John W. , Rausser Gordon C.
Published: April 2012

It is postulated that some issues of economic policy in general, and of Australian agricultural policy in particular, may be analysed in the framework of an adaptive control model. Policy making is characterized as a rational, sequential decision‐making process under conditions of imperfect knowledge in which forthcoming information may be used to learn about the uncertain terms as decision periods pass. Emphasis is given to the linear‐quadratic control problem. The paper provides a review of the formulation of a policy problem in the framework of an adaptive control model and of derived policy strategies. An illustrative example is reported.
USING INPUT DEMAND AND PRODUCTION FUNCTION MODELS TO ASSESS THE NET BENEFITS OF DAIRY HERD IMPROVEMENT
Authors: Ryan James G.
Published: April 2012

Two methods of evaluating (the net social benefits of the dairy herd‐improvement scheme operated by the New South Wales Department of Agriculture are described. The first involves derivation of 'an input demand' function for the herd‐recording aspect of the scheme and use of this function to estimate the economic surplus (net of both private and public costs) provided by the service. The second approach involves deriving a production function for milk from which it is possible to estimate the contribution herd‐recording and artificial breeding have made to increasing milk yields per cow. Social benefits are shown to have been less than social costs for herd‐recording, however dairy farmers have made net private gains. The herd‐recording scheme has contained a regressive subsidy element. The production function approach show that artificial breeding and herd‐recording were profitable complements in production.
A MODEL OF NEW ZEALAND APPLE SUPPLY RESPONSE TO TECHNOLOGICAL CHANGE*
Authors: Rae Allan N. , Carman Hoy F.
Published: April 2012

A supply response model for New Zealand apples is specified and equations for new plantings, removals, yields and adoption of an innovation are estimated. The model expands on perennial crop models previously estimated by incorporating the time pattern of adoption of a planting innovation and formulation of a measure of yield expectations given technological change.
A SURVEY OF STUDENTS' ATTITUDES TO METHODS OF TEACHING FARM MANAGEMENT*
Authors: Tanner Carolyn
Published: April 2012

This paper presents the results of a survey of students' attitudes towards a variety of teaching methods. Included in the methods are a simple farm management game and a complex computer‐based game. The results provide a basis for deciding the appropriateness of the teaching methods to the different facets of farm management courses.
SUPPLY RESPONSE IN THE WHEAT‐BELT OF SOUTH‐EASTERN AUSTRALIA: THE IMPACT OF DELIVERY QUOTAS ON WHEAT PLANTINGS*
Authors: Fisher Brian S.
Published: April 2012

Supply response equations were estimated for a number of regions in south‐eastern Australia using the area sown to wheat as the response variable. These equations were used to determine the effect of delivery quotas on the area of wheat sown in those regions. Results from this study indicate that delivery quotas were only effective in reducing wheat plantings in the south‐eastern Australian wheat‐belt in the 1970‐71 season. Plantings in other seasons in which delivery quotas were applied could be explained using variables such as wheat prices and a time trend.
STOCHASTIC‐COMPUTERIZED‐ACTIVITY‐BUDGETING FOR SHEEP ENTERPRISES*
Authors: Mill Stephen J. , Longworth John W.
Published: April 2012

Stochastic‐computerised‐activity‐budgeting (SCAB) facilitates and extends the traditional gross margins analysis for sheep activities. SCAB is one of the very few computerised management aids so far developed for Australian farm management situations. In the deterministic mode SCAB calculates gross margins based on point estimates of all the relevant parameters. In stochastic mode it generates a distribution of pay‐offs (gross margins) based on the manager's subjective probability distribution for the relevant major uncertain paramaters. The variance of this distribution of pay‐offs represents a measure of the risk associated with the activity given the manager's current knowledge and expectations.
TARIFF COMPENSATION: SUFFICIENT JUSTIFICATION FOR ASSISTANCE TO AUSTRALIAN AGRICULTURE?*
Authors: Harris Stuart
Published: April 2012

This paper discusses in greater detail the case for tariff compensation set out in the Green Paper on Rural Policy. It considers a number of theoretical and practical arguments levelled against the principle, including those put forward in the Annual Report for 1973‐74 of the Industries Assistance Commission. It concludes that despite the various counter arguments, the second best argument for tariff compensation applicable to low cost manufacturing as well as rural industries, remains valid in principle; in practice the extent to which any such partial compensation would be warranted needs to be assessed in the light of the appropriate substitution and complementarity relationships.
TEXTILE FIBRE SUBSTITUTION AND RELATIVE PRICES
Authors: Minford Patrick
Published: April 2012

The elasticity of substitution between textile fibres is investigated within a CES production function in which the fibres are grouped according to degree of substitutability. Disaggregated data for U.S. textile usage in the post‐war period are examined and the elasticities estimated are generally above unity. The conclusion is reached that, while technical change and diffusion may have explained changing fibre shares in certain, usually specialized end‐uses and contributed to the explanation in others, in most end‐uses relative price change has been an important factor.
PLANT PESTICIDE ECONOMICS WITH SPECIAL REFERENCE TO COTTON INSECTICIDES
Authors: Longworth John W. , Rudd Don
Published: April 2012

The energy crisis and the current world food situation have both drawn attention to the importance of off‐farm inputs in high‐technology agricultural systems. Plant pesticides are one of the most important of these off‐farm inputs. The correct use of chemical pesticides requires a high level of managerial competence since the issues involved are extremely complex. The development of an integrated approach to the management of plant pests offers an alternative to the increasingly expensive chemical control techniques. Cotton production illustrates both the complexities of the management involved in plant pest control and the feasibility of developing integrated control strategies. Plant pesticides, especially insecticides, also create externalities. The policy issues surrounding the use of cotton insecticides demonstrates the need for careful analysis before political action is taken. A feasible package of policy measures for the control of the use of insecticides in Australian cotton‐growing areas is suggested.
SOME IMPLICATIONS OF THE GROWTH OF THE MINERAL SECTOR*
Authors: Gregory R.G.
Published: April 2012

The rapid growth of Australian mineral exports, through its effect on the balance of payments, is a significant force for structural change in other sectors. From the viewpoint of the rural sector which exports and the manufacturing sector which competes with imports, this force will be similar to that which would flow from very large tariff changes. Consequently, by observing the adjustments of the rural and manufacturing sectors to the rapid growth of mineral exports, it is possible to calculate indirect estimates of the effect of the Australian tariff on them. It is calculated that the mineral discoveries have had a much greater effect on these sectors than the recent across the board 25 per cent general reduction of tariffs.
WELFARE IMPLICATIONS OF MORE ACCURATE RATIONAL FORECAST PRICES
Authors: Freebairn John W.
Published: April 2012

Models are constructed to assess the welfare effects for producers, consumers and society of producers using forecast prices based on more accurate estimates of variables causing shifts in the demand for and supply of commodities. The basic model is a stochastic cobweb model in which producers' forecast price is the rational forecast price. The model is extended for many commodities, for partial producer response to more accurate forecast prices, and to include stock holding. In terms of economic surplus, producers and consumers gain from more accurate estimates of demand shift variables, producers gain and consumers lose from more accurate estimates of supply shift variables, and in both cases there is a net society gain.
ENERGY BUDGETING: JOULES OR DOLLARS?
Authors: Edwards Geoff W.
Published: April 2012

The assumptions which must be made to accept ratios of energy output to energy input as an efficiency measure with normative significance are examined and found to be unrealistic. It is considered better for governments to modify market prices where divergences exist between private and social costs or benefits than to use energy ratios, or prices determined by energy considerations, as a criterion in allocating resources. Moreover, in a trading world, energy considerations are often of little use in positive analysis of the relationship between energy prices and the prices, or profitability of production, of different foods in a particular country.
CRITIQUE OF THE METHODOLOGY OF AUSTRALIAN AGRICULTURAL ECONOMICS
Authors: Stent W.R.
Published: April 2012

In this article attention is drawn to serious methodological weaknesses in Australian agricultural economics. It is frankly polemic in style and after a discussion of the philosophies of science of Popper and Kuhn the author argues that Australian agricultural economists ought to be more critical of the assumptions on which current theory is based and should be seeking to establish a new approach to the problems of the agricultural economy which would place more emphasis on social justice than on 'growth and efficiency'.
A NOTE ON THE ECONOMIC SURPLUS FROM DAIRY HERD RECORDING IN VICTORIA*
Authors: Ryan Timothy J. , Badham F.V.
Published: April 2012

An input demand model was used to estimate the own price elasticity of dairy herd recording in Victoria. The net benefits to society over a 21 year period were estimated by determining the economic surplus accruing to participators each year and then subtracting all Government monies involved. The net social benefits, unlike the benefits reported for the New South Wales scheme, have on average been positive and have been consistently positive over the latter years of the data.
MARKETING AUSTRALIAN BEEF AND EXPORT DIVERSIFICATION SCHEMES*
Authors: Freebairn John W. , Gruen Fred H.G.
Published: April 2012

The Australian Meat Board (AMB) can influence the quantities sent to and the prices received for Australian beef and veal in the domestic and various export markets. Through its power to grant export licences and the conditions to be met in obtaining export licences the AMB can adopt the role of a price discriminating monopolist without supply control. This paper evaluates the price, quantity, efficiency and distribution effects of the export diversification scheme introduced by the AMB in 1968, of some modified schemes proposed in 1976, and of an alternative system whereby rights to export to premium export markets with quota restrictions are auctioned.
ON THE COMPETITIVE FIRM UNDER PRODUCTION UNCERTAINTY*
Authors: Pope Rulon D. , Just Richard E.
Published: April 2012

Risky production functions which are commonly in use are shown to be very restrictive. In particular, such functions cannot describe technologies where inputs marginally reduce risk. A simple production function which avoids these restrictions is posited and alternative estimation procedures are discussed. Both maximum likelihood and multistage estimators are discussed.
EFFECTS OF MINERAL DEVELOPMENT ON THE ECONOMY*
Authors: Snape Richard H.
Published: April 2012

R. G. Gregory's article on the effects of mineral discoveries on the Australian economy (Australian Journal of Agricultural Economics, August 1976) has attracted much attention. While the partial‐equilibrium nature of his model has enabled it to be absorbed readily, it has the usual theoretical limitations of such analyses. Allowing for general equilibrium repercussions, but still accepting his general assumptions, some of Gregory's conclusions regarding the impact of new mineral discoveries require modification or extension:

Although production of goods other than minerals can be expected to decline, the production of some goods in this category may rise;

A social gain is still possible even if outputs of other goods do not change;

While the price of non‐tradeable goods can be expected to rise, production of non‐tradeables may increase or decrease.

We also show the magnified effect of mineral discoveries on the rents of factors specific to minerals, and the squeeze exerted on the rents of factors specific to other tradeables.
ESTIMATION OF A PRODUCTION FRONTIER MODEL: WITH APPLICATION TO THE PASTORAL ZONE OF EASTERN AUSTRALIA
Authors: Battese George E. , Corra Greg S.
Published: April 2012

This paper considers a statistical model for a production frontier that is consistent with the traditional (nonstochastic) definition of a production function given in microeconomic theory. Limiting cases of the model are the familiar average production function and an envelope production function. Maximum‐likelihood estimators for the parameters of the model are defined. The three related models are applied in the estimation of a production frontier for the Pastoral Zone of Eastern Australia with use of data from the Australian Grazing Industry Survey.
THE INVENTORY SCHEME FOR AUSTRALIAN WOOL
Authors: Taffe J.R.
Published: April 2012

A model put forward by the Australian Wool Corporation to simulate the behaviour of the wool market under an inventory scheme is described. Some deficiencies in the model are pointed out and suggestions are made for alterations to improve the model's performance.
THE CASE AGAINST TARIFF COMPENSATION*
Authors: Warr Peter G.
Published: April 2012

Should lightly protected industries be given tariff compensation? Reasonable people can and do differ on this issue; neither the case supporting tariff compensation nor that opposing it is fully conclusive. Nevertheless, it is the purpose of this paper to argue that, on balance, the stronger argument is on the negative side. It is argued that economists in particular should focus their limited influence on recommending tariff reductions rather than tariff compensation, but that even if this fails they should be most reluctant to recommend tariff compensation. The potential benefits from tariff compensation are small relative to the gains from tariff reduction but the informational problems of tariff compensation are such as to make even these small potential benefits unlikely in practice.
IN SEARCH OF HUNT'S SHORT‐RUN PRICE CYCLES IN THE SYDNEY WOOL FUTURES MARKET*
Authors: Fisher Brian S. , Tanner Carolyn
Published: April 2012

The structure of prices of Sydney wool futures contracts is examined with the aid of spectral analysis. Although the series studied are not strictly random walks, it is shown that there is little useful information for forecasting contained in the historical price data. It is concluded that the behaviour of prices on the Sydney wool futures market is essentially the same as that observed for the majority of stock and futures price series from other markets.
AUSTRALIAN WHEAT STORAGE: A DYNAMIC PROGRAMMING APPROACH*
Authors: Alaouze Chris M. , Sturgess N.H. , Watson A.S.
Published: April 2012

Dynamic programming is used to examine whether Australia should store wheat for subsequent sale at higher prices. The dynamic programming model is developed assuming that the demand for Australian wheat is perfectly elastic at the world price. An important consequence of this assumption is that the algorithm used in computing the optimal policy takes a very simple form. It is concluded that interest rate and wheat price in the following season are the major determinants of storage policy. When prices are stable, rule‐of‐thumb policies, such as storing when prices are below average, are sub‐optimal.
ESTIMATION OF CONSUMER'S SURPLUS VALUES FOR LAND POLICIES
Authors: Sinden Jack A.
Published: April 2012

Changing social objectives and a greater variety of policy instruments require extra detail and fuller specification in analyses of land policies. Consumer's surplus remains an appropriate measure of net social benefit but surplus values must be estimated more carefully. The paper examines the application of four surplus concepts to policy problems and illustrates a methodology to estimate all four. The estimates for the different concepts can differ widely and the correct concepts have not always been advocated. The methodology appears useful where other estimation procedures have failed.
PROS AND CONS OF TEMPORARY INDUSTRY ASSISTANCE
Authors: Freebairn John W.
Published: April 2012

The objectives and relative effectiveness of different methods of providing temporary assistance to a particular industry experiencing a significant reduction in returns and liquidity are evaluated. It is doubtful that assistance can be justified for resource efficiency reasons. This is argued to be so when the cause of the downturn in industry returns is due to temporary factors, such as drought, and when it is due to long‐term trend factors, such as economic growth. While an industry slump can cause welfare problems, most households are able to use contingency strategies, e.g. savings, or resort to existing welfare programs, e.g. unemployment benefits. Direct income grants are preferable to output and input subsidies as means of providing welfare assistance.
AN ALTERNATIVE SOLUTION TO LINEAR PROGRAMMING PROBLEMS WITH STOCHASTIC INPUT‐OUTPUT COEFFICIENTS
Authors: Wicks John A. , Guise John W.B.
Published: April 2012

Deriving acceptable farm plans where input‐output coefficients are stochastic is a complex problem. Previous formulations have required many simplifying assumptions about the stochastic variables in the analysis. This paper presents an alternative approach based on the mean absolute deviation, which permits solution by a conventional linear programming algorithm whilst avoiding some of those assumptions previously required. The formulation also incorporates a stochastic objective function. Examples are provided using the situation of stochastic feed supply with reference to representative sheep‐grain farms on the Northern Tablelands of New South Wales. Results from these suggest that this alternative approach is a distinct improvement on earlier stochastic formulations which utilize linear programming algorithms.
RURAL CREDIT POLICY AND BANK RURAL LENDING*
Authors: Standen B.J.
Published: April 2012

A model of bank rural lending in Australia for the period 1950/1973 is constructed to measure the effects of various rural credit policies on bank rural advances. Results indicate that rural sector bank deposits did not influence the rural sector's share of advances; Farm Development Loan Fund loans simply replaced overdraft advances; rural borrowers were not discriminated against in periods of tight credit; interest rate concessions induced a greater proportionate reduction in the rural share of advances.
NATIONAL IMPACTS OF A REGIONAL PRIMARY INDUSTRY
Authors: Douglas J.J. , Reilly J.J.
Published: April 2012

This paper demonstrates a method whereby the national multiplier effects of a given regional industry (or group of industries) can be calculated. The method obviates the need to assume that national input‐output coefficients will be duplicated in each regional case, and further does not necessitate the estimation of a complete regional input‐output model. An example, utilizing some data originally collected for a regional input‐output model of Central Queensland, is included.
SOME GENERAL EQUILIBRIUM EFFECTS OF MINING GROWTH ON THE ECONOMY
Authors: Stoeckel Andrew B.
Published: April 2012

The effects of mining sector growth are analysed with a five‐sector general equilibrium model. The effect of the mineral discoveries is to cause the agricultural sector to contract, but to cause the import‐competing sector to expand by a small amount–a result which differs from Gregory's (1976) analysis. However, a mining boom caused by increases in external demand, rather than by new discoveries, leads to a different set of results. Some likely effects of the boom on the growth rates of the different sectors in the economy are reported. Finally, the effects of an export tax on minerals are considered.
PRICING EFFICIENCY IN THE RETAIL MEAT MARKET*
Authors: Naughtin John C. , Quilkey John J.
Published: April 2012

The degree of pricing efficiency achieved in the retail meat market is reconsidered in this paper. The approach adopted is to develop an economic model of the pricing behaviour of retail butchers, to postulate a behavioural model consistent with the economic model, and to test this model using the data supplied by three retail butchers. The results indicate that the deleterious effects of price levelling and averaging practices on pricing efficiency may have been understated in earlier studies. It is concluded that further research is required to re‐assess the extent of the problem of pricing efficiency in the retail meat market.
EMPIRICAL TESTS OF SPATIAL AND STRUCTURAL EFFECTS ON CATTLE AUCTION PRICES
Authors: Hogan J.C. , Todd Mike C.
Published: April 2012

Two investigations are reported. The first is a comparison of average prices for two cattle types within pairs of some major auction centres in Australia. Significant price differences existed in three of the four cases studied. The second is a study of the main determinants of price differences between auction selling centres through a case study of a large and small auction centre. The major factor explaining the price differences between the two auction centres was lot size. This factor also influenced price variation within auctions. The number of buyers purchasing cattle did not affect price levels.
THE USE OF A DECISION MAKER'S UTILITY FUNCTION IN A LINEAR PROGRAMMING ANALYSIS OF AGRICULTURAL POLICY*
Authors: Parton Kevin A.
Published: April 2012

A decision theoretic approach to agricultural policy decision making is examined to discover whether a utility function of an Australian Wool Corporation decision maker can be established and, if so, whether this can be used to improve the policy analysing performance of an agricultural sector linear programming model. After discussing the theoretical requirements of the utility function elicitation and the elicitation procedures, the characteristics of the resulting functions are examined. A means for its inclusion in a linear programming framework is described and some analysis of policy is carried out. The general conclusions are that the relevance of the agricultural sector analysis is enhanced by the use of such a utility function.
INCORPORATING MULTIPLE OBJECTIVES IN PLANNING MODELS OF LOW‐RESOURCE FARMERS
Authors: Flinn J.C. , Jayasuriya S. , Knight C.G.
Published: April 2012

Linear goal programming provides a means of formally incorporating the multiple goals of a household into the analysis of farming systems. Using this approach, the set of plans which come as close as possible to achieving a set of desired goals under conditions of land and cash scarcity are derived for a Filipino tenant farmer. A challenge in making LGP models empirically operational is the accurate definition of the goals of the farm household being modelled.
A NOTE ON BIAS IN THE ESTIMATED EFFECTS OF BEEF IMPORTS ON U.S. MEAT PRICES
Authors: Ryan Timothy J.
Published: April 2012

The impact of beef imports on United States meat prices is a highly emotional and controversial issue. Congressmen representing urban districts, and to a lesser extent the Administration, look towards beef imports as a way of containing rapid increases in meat prices. Congressmen and Senators from beef‐producing States regard beef imports as a direct attack on the U.S. beef‐producing industry.

These differing views are being reconciled through Congress considering amendments to the Meat Import Law (Public Law 88‐482). The impacts and the amendments are of vital interest to Australia because about 25 per cent of Australia's beef production is sold on the lucrative U.S. market.

In this note it is argued that, in general, the reported impacts on U.S. meat prices are overestimates because the analysts misspecify the structure of the U.S. beef industry.
A MODEL OF JOB CHOICE FOR THE ANALYSIS OF GOVERNMENT INTERVENTION IN STRUCTURAL ADJUSTMENT*
Authors: Lloyd P. J.
Published: April 2012

The paper presents a model of choice between alternative available jobs in which each job has an uncertain multi‐period income prospect. Imperfectly informed expectations as well as job preferences and attitudes to risk determine the choice. The model is used to locate and discuss some problems of designing government programs which are intended to increase job mobility. The main conclusion is that government interventions may impose costs on the economy which are greater than the benefits because the information needed to assess costs and benefits is not generally available and political pressures may distort the expenditures.
WOOL‐GROWER ADOPTION OF SALE BY SAMPLE
Authors: Findlay Christopher C.
Published: April 2012

Adoption levels of the innovation, sale of wool by sample, were less than complete but still increasing even after the innovation had been available for a number of years. A model that offers an explanation of the innovation process by individual growers is discussed and tested using econometric methods. The model is converted to testable form, given the data available, with the help of techniques used in studies of demand for travel. Variables found to have a significant influence on adoption levels include grower characteristics, which influence the profitability of innovation, and search variables such as contact with other growers and policies of wool brokers.
AUSTRALIAN AGRICULTURE AND WORLD COMMODITY TRADING ARRANGEMENTS
Authors: Harris Stuart
Published: April 2012

A long period of international discussion and negotiation about new global trading arrangements ended in 1979. Despite changed economic and institutional circumstances, and growing deficiencies in the. existing arrangements for agricultural trade, these negotiations have done little to improve the efficiency with which the world's agricultural resources are used. Rather, they have tended to institutionalise the status quo. This is likely further to disadvantage efficient producers and to lead to a growing bilateralism in trading relationships, with consequent increased politicisation and potential for conflicts and instability.
A REVIEW OF THREE RESEARCH PROGRAMS IN QUANTITATIVE MODELLING IN THE BUREAU OF AGRICULTURAL ECONOMICS*
Authors: Kingma O.T. , Longmire James L. , Stoeckel Andrew B.
Published: April 2012

Elements of three of the BAE's research programs in economic modelling of the rural sector, namely, the modelling of agricultural production systems, rural commodity markets and agriculture within a general equilibrium framework, are reviewed with emphasis on the use of such models in policy work. Suggestions are made for further modelling in these areas.
CROSS‐SUBSIDISATION OF RURAL AREAS VIA UTILITY PRICING POLICIES*
Authors: Thomson Norm , Walsh Cliff
Published: April 2012

Public utilities which apply roughly uniform prices to all consumers often engage in cross‐subsidisation — charging prices which are below cost for consumers in low population density areas but above cost for consumers in high density areas. The distributional and allocative implications of this practice are examined and it is concluded that some cross‐subsidisation may be justifiable on welfare grounds even where no externalities exist. There is, however, little empirical evidence released by utilities to enable assessment of the efficiency of their practices. If nothing else, we highlight the need for greater public disclosure of pricing practices by public utilities.
FARM SYNDICATION AND RISK SHARING: A CASE STUDY*
Authors: Bartholomaeus M. K. , Hardaker J. Brian
Published: April 2012

The effectiveness of fully integrated group farming as a means of permitting farmers to achieve economies by working together and to share risk is investigated using two case‐study farms from the mid‐north region of S.A. Linear programming is used to explore the scope for economies achievable through group farming. The results show that, by joint use of resources, total net farm income can be increased and average costs per unit value of output can be reduced. The risk‐sharing advantages of group farming are examined using quadratic risk programming. A group farm plan is found that generates a risky income which, when shared between the two risk‐averse farmers, allows both to increase their expected utilities. The group plan also generates a higher aggregate expected net farm income than with sole ownership.
LABOUR SUPPLY AND OFF‐FARM WORK BY FARMERS: THEORY AND ESTIMATION
Authors: Robinson Chris , McMahon Pat J. , Quiggin John C.
Published: April 2012

Off‐farm employment has become increasingly important as an aspect of resource adjustment and a source of income in Australian agriculture. However, it is surprising that there is a paucity of work on this topic reported in the agricultural economics literature. Therefore, we have drawn upon recent developments in labour economics in order to investigate off‐farm employment in Australia. A conceptual model of the allocation of a farmer's labour between farm and off‐farm work is developed and applied to cross‐sectional data from the Australian Agricultural and Grazing Industries Survey. A Tobit maximum likelihood procedure is utilised to test the influences of the life cycle, level of human capital, wealth, non‐wage income and farm income on the off‐farm labour supply of farmers.
SUPPLY RESPONSIVENESS OF RICE FARMERS IN LAGUNA, PHILIPPINES
Authors: Flinn J.C. , Kalirajan Kaliappa P. , Castillo Linda L.
Published: April 2012

The supply response and input demand by farmers using modern rice technology in Laguna, Philippines were estimated using profit function analysis. The results indicate that farmers do maximise short‐term profits and respond to price changes efficiently. The supply elasticity of rice with respect to its own price was approximately unity. Changes in real wages were estimated to have a greater impact on rice profit and supplies than changes in the real prices of mechanised land preparation, fertiliser or pesticides. Production elasticities derived from the profit function were consistent with those estimated directly from the underlying production function.
USE OF ERRORS OF PREDICTION IN IMPROVING FORECAST ACCURACY: AN APPLICATION TO WOOL IN AUSTRALIA
Authors: Lee B.M.S. , Bui‐Lan Anh
Published: April 2012

Over the past 20 years, the RAE has produced commodity forecasts in BAE Trends in Australian Agricultural Commodities, Farm Costs and Farm Incomes and other commodity outlook publications. There have been several studies on the accuracy of the forecasts, either comparing RAE forecasts with naive forecasts or making simple calculations of biases and standard deviations. Such approaches are not sufficiently informative in that they do not give any indication of what has caused the inaccuracies, nor of the timing of significant changes in prediction accuracy. In this analysis, an attempt is made to improve upon this situation using some tools of time series analysis.
THE ELASTICITY OF AGGREGATE AUSTRALIAN AGRICULTURAL SUPPLY: ESTIMATES AND POLICY IMPLICATIONS
Authors: Pandey S. , Piggott Roley R. , MacAulay T. Gordon
Published: April 2012

Annual time series data for the period 1950‐51 through 1975‐76 are used to estimate the price elasticity of aggregate Australian agricultural supply using two methods. The short‐run elasticity is estimated to be highly inelastic but it has been increasing through time. The preferred estimate of the long‐run elasticity is in the relatively inelastic range and it has also been increasing through time. Some implications of these results for intersectoral resource flows and compensatory assistance, the cost‐price squeeze, the effects of the mineral boom and monetary policy are discussed.
PRODUCTION RISK AND EFFICIENT ALLOCATION OF RESOURCES
Authors: Anderson Jock R. , Griffiths William E.
Published: April 2012

Efficient allocation of resources has usually been couched in risk less terms, partly because statistical techniques did not exist for measuring the impact of varying levels of factors of production on risks associated with production. Now that such techniques are available, methods are required for determining efficient allocations. Such models, particularly those exploiting stochastic efficiency analysis, are illustrated here with respect to empirical risk‐sensitive, farm‐firm production functions.
RELATIONSHIPS AMONG FARMERS' GOALS AND FARM ADJUSTMENT STRATEGIES: SOME EMPIRICS OF A MULTIDIMENSIONAL APPROACH
Authors: Cary John W. , Holmes Bill
Published: April 2012

A knowledge of farmers' goals provides an important basis for understanding farmers' preferences for, and choices among, various farm adjustment strategies. Such information is also valuable in estimating the acceptability to farmers of various government measures to assist rural adjustment. The goals of Queensland graziers, with and without a history of farm expansion, are compared. Different adjustment strategies are analysed in terms of the ways in which they satisfy different individual goals. A dimensional analysis of relationships among goals and adjustment strategies reveals that, for those willing to expand but without a history of expansion, income and social goals are at odds with each other. For these graziers, property expansion seemed to be the strategy most likely to meet both these goals. For graziers with a history of expansion, income goals were complementary with social goals.
THE DEMAND FOR DOMESTICALLY PRODUCED SAWN TIMBER: AN APPLICATION OF THE DIEWERT COST FUNCTION
Authors: Doran Howard E. , Williams David F.
Published: April 2012

The Australian demand for domestically‐produced sawn timber is investigated by considering its major use — as an input into residential construction. Using a cost function approach, a system of equations is derived expressing quantities demanded in terms of relative prices. Cross‐price elasticities are estimated and the falling input‐output ratio of timber in residential construction is analysed by decomposing the change in this ratio into price, outputs and taste/technology effects. A major finding is that, while substitution of timber for other inputs has been encouraged through relative price movements, this effect has been more than offset by taste and technology trends away from timber usage.
WOOL PRICE STABILISATION AND PROFIT RISK FOR WOOL USERS
Authors: Quiggin John C.
Published: April 2012

It has often been suggested that more stable wool prices would lead to an outward shift in the long‐run demand for wool. To assess this claim it is necessary to examine different sources of risk and instability in wool prices and their impact on the risk borne by wool users. A model is presented in which the input and output decisions of a wool processor are related to interactions between the wool and yarn markets. It is concluded that, if fluctuations in final demand or exchange rates are the major sources of instability, the long‐run effect of stabilising prices is to increase the risk faced by wool users and reduce that faced by wool growers.
SOME BOUNDS TO THE RELEVANCE OF DECISION THEORY*
Authors: Wright Victor E.
Published: April 2012

Decision theory affords a means for the objectively rational use of information in decision‐making. Concern has been expressed from time to time that the application of decision theory is, or is sometimes, of doubtful appropriateness. In this paper an attempt is made to identify a principal source of this concern and the mis‐specification of decision problems using decision theory that it implies. Suggestions are offered as to how the merits of the use of decision theory might be retained in decision‐making situations where doubts may arise about the appropriateness of its application.
ON RISK DEDUCTIONS IN PUBLIC PROJECT APPRAISAL
Authors: Anderson Jock R.
Published: April 2012

Project appraisal under uncertainty should, in general, be worked in terms of carefully computed expected or mean values of uncertain elements. The major exceptions are when: (a) project returns are large relative to national income; or (b) project returns are highly correlated with other national income. Approximate procedures have been developed for computing risk adjustments in each of these special cases singly, but here, a more comprehensive procedure is described that encompasses both cases separately and jointly.
AGRICULTURAL POLICY FORMATION: THE DIFFERING FUNCTIONS OF INDEPENDENT ANALYSTS AND ADVISERS*
Authors: Standen B.J.
Published: April 2012

Agricultural policy has been analysed systematically in Australia but the process of policy formation is not well understood. Distributional dimensions of policy issues influence decisions and policy analysts might improve their performance by better identification of these dimensions without neglecting basic efficiency criteria. These propositions and the functions of policy advisers are considered in this paper.
AGRICULTURAL RESOURCE MANAGEMENT
Authors: Dumsday Robert G.
Published: April 2012

Today the land economists of yore have either gone to their reward or else been transmuted into resource economists who, with a few exceptions, spend their time in airy disputations about externalities, shadow prices and the choice of appropriate discount rates to be applied to future benefits (Campbell 1982, p. 9).
USUFRUCT AND USURY: AN ANALYSIS OF LAND LEASING IN EAST JAVA*
Authors: Sturgess N.H. , Wijaya Hesti , Dow N.
Published: April 2012

On Java, land leasing functions as a credit instrument when the entire rent is paid in advance. The rights obtained by the tenant/lender are the 'price' of the loan made to the land owner/borrower. A model of such transactions shows that the area leased and duration of the lease are substitutes in raising a loan of given size and that the substitution rate is related to the term structure of interest rates.
MEAN‐GINI ANALYSIS, STOCHASTIC EFFICIENCY AND WEAK RISK AVERSION
Authors: Buccola Steven T. , Subaei Abdelbagi
Published: April 2012

Stochastic dominance methods lately have been used to derive efficient strategies for given risk aversion intervals. A new decision approach, which makes use of the Gini coefficient, is shown to represent effectively the preferences of weakly risk averse individuals. The approach also has distinct advantages over stochastic dominance analysis. An application is provided of farmers' choices among alternative co‐operative pooling rules.