bluuebunny/crossref_metadata_2025 huggingface dataset:
ECONOMIC ASPECTS OF SELECTION IN THE DAIRY HERD IN ISRAEL*
Authors: Kislev Yoav , Rabiner Uri
Published: April 2012

The paper reports a study of the operation of the breeding system in the milk herd in Israel. Basic notions in quantitative genetics are explained and incorporated in a simulation model which is used to illustrate and analyse the selection process. Particularly emphasised are the traits common to selection and other research and development effort; among them, search, limited information, and biological and technical constraints. Differential technical changes affected the structure of the milk producing industry and its measured productivity; these effects are discussed in the last part of the paper.
ON THE HIDDEN REVENUE EFFECTS OF WOOL PRICE STABILISATION IN AUSTRALIA: INITIAL RESULTS
Authors: Campbell R. , Gardiner B. , Haszler H.
Published: April 2012

A preliminary analysis of demand in eight major OECD wool‐consuming countries is used to provide up‐to‐date estimates of price elasticities of demand for wool. Those elasticities are employed to calculate ex ante market prices, assuming no wool price stabilisation in Australia. The computed ex ante prices are used in a dynamic simulation to estimate demand and, hence, revenue from wool sales to the eight countries in the absence of reserve price operations in Australia. Based on the preferred semi‐log demand curve, the variability of wool prices is estimated to have been reduced by 44 per cent, due to Australian intervention in the market up to 1977/78. However, price stabilisation is estimated to have lowered the revenue from Australian wool sales to the eight countries by S139m, or by 2 per cent, in the period up to 1977/78.
WOOL IN 1980*
Authors: Watson A.S.
Published: April 2012

Since the introduction of a reserve price scheme in 1970, the interest in wool marketing previously shown by agricultural economists has not been maintained outside the public service and the wool industry itself. Nor is the subject as divisive amongst wool growers with, in general, 'orderly marketing' now acceptable to all factions of wool growers. The history of wool marketing discussion in Australia is reviewed and some reasons for this changing climate of opinion are discussed. An attempt is made to assess the actual performance of the buffer stock scheme in the light of the academic literature of the 1960s.
SUPPLY RESPONSE OF AUSTRALIAN WHEAT GROWERS
Authors: Sanderson B. A. , Quilkey J. J. , Freebairn J. W.
Published: April 2012

Alternative specifications of models of the supply response of Australian wheat growers and their economic implications are considered in terms of the existence and nature of production lags, and the choice between expected prices and expected gross returns as the preferred explanator of producers' response to changing economic conditions. The analysis indicates that there are lags which are due primarily to the difficulties and costs of rapid adjustment rather than to the time required to revise expectations. The statistical results were similar for the alternative specifications of gross margins and prices as the economic decision variables. However, the price elasticities derived using the gross margins specification were about a third of those using the prices specification. The gross margins specification yielded additional information in the form of yield and input cost elasticities.
NONPRICE RATIONING OF AGRICULTURAL CREDIT BY TWO TRADING BANKS
Authors: Ockwell A.P. , Batterham Robert L.
Published: April 2012

The non price mechanism used by the trading banks to ration credit among farmers was studied using a survey designed along the lines of a factorial experiment. Of the farmer characteristics studied, managerial ability emerged as being most important in affecting the amount a farmer could borrow. Banking history and, to a lesser extent, security were also influential. However, the research indicated that there is great variability in the amounts that individual bank managers are prepared to lend.
A MODEL OF SUPPLY RESPONSE IN THE AUSTRALIAN ORANGE GROWING INDUSTRY*
Authors: Alston Julian M. , Freebairn John W. , Quilkey John J.
Published: April 2012

A model of the Australian orange growing industry to explain changes in plantings, removals, the number and age composition of trees and orange production is developed and estimated. Most of the variation in plantings is explained by the expected profitability of growing oranges, the current stocks of bearing and nonbearing trees, and removals of trees last year. Estimates of the elasticities of response of plantings and production to price changes are low and there are long time lags. An illustrative application of the model projects future developments in the industry for alternative assumptions about the profitability of growing oranges.
THE INCOME AND CONSUMPTION EXPERIENCES OF A SAMPLE OF FARM FAMILIES*
Authors: Mullen John D. , Powell Roy A. , Reece B.F.
Published: April 2012

The way in which the consumption of farm families is adjusted to fluctuations in income has important implications at the national, regional and farm levels. In this paper, hypotheses about the consumption of farm families are examined using data from 16 families in a wheat‐sheep region of New South Wales for the eight‐year period 1968/69 to 1975/76. The results of the study indicate that lagged effects are important in explaining consumption by farm households. It was not possible to partition these lag effects between partial adjustment and normal income influences. Estimates of the short‐run (one‐year) marginal propensity to consume (mpc) were quite low, ranging from 0.13 to 0.16. The best estimates of the long‐run mpc ranged from 0.19 to 0.25.
FUTURES PRICES AS FORECASTS OF COMMODITY SPOT PRICES: LIVE CATTLE AND WOOL*
Authors: Giles David E. A. , Goss Barry A.
Published: April 2012

In this paper the foundations on which the predictive interpretation of futures prices rests are discussed, and possible reasons for the differential predictive performance of futures prices as between different commodity markets examined. The predictive performances of futures, and spot prices themselves, are tested empirically, using Australian data for wool (a continuous inventory commodity) and finished live beef cattle (virtually a non‐storable commodity), by means of instrumental variables estimation.
THE IMPACT OF SCIENTIFIC RESEARCH ON AUSTRALIAN RURAL PRODUCTIVITY
Authors: Hastings Trevor
Published: April 2012

In this paper the relationship between scientific agricultural research and aggregate rural productivity is investigated. The Solow 'residual' model is used to estimate productivity changes. An attempt is made to investigate the extent to which scientific research, measured by scientific personnel, 'explains' technical change. An education and climatic variable are added to the model. The results suggest a positive relationship between scientific research, climate and aggregate productivity.
A COMPARISON OF PROCEDURES FOR ESTIMATING RETURNS TO RESEARCH USING PRODUCTION FUNCTIONS
Authors: Davis Jeff
Published: April 2012

The production function approach has been one of the two main ex‐post procedures used to estimate the rate of return to agricultural research. A critical part of estimating the marginal internal rate of return (MIRR) is the procedure adopted to spread the benefits of research through time. Past studies using this approach have given only brief consideration to this computational procedure. The objective in this study was to review the different computational procedures used and, then, using cross‐section production function estimates for U.S. agriculture, determine whether the MIRR estimates are sensitive to the computational procedure used. The results from this comparison indicate a large range in the estimates. The implication, then, is that careful consideration should be given to the choice of computational procedure, both when undertaking such a study and when comparing the results of different studies.
ASSESSING SOME EFFECTS OF INFLATION ON THE AGRICULTURAL SECTOR*
Authors: Freebairn J. W.
Published: April 2012

The time pattern of effects of inflation on prices received, prices paid, asset returns, and real incomes of different members of the agricultural sector is described. In the long run it is argued that inflation will have very small, if any, effects on relative prices or real incomes. For the short run, which may be several years, it is likely that some prices will rise more slowly than others and cause income losses. Included in the group of losers are producers of export products.
PRODUCTION RISK AND INPUT USE: PASTORAL ZONE OF EASTERN AUSTRALIA
Authors: Anderson Jock R. , Griffiths William E.
Published: April 2012

Few attempts have been made to estimate production functions for the Australian grazing industries. The question of the nature of the effect of input levels on production risk has been broached even more rarely. Previous investigators had to employ models and methods of estimation which embody highly restrictive implicit assumptions about the nature of risk effects. A typical restrictive feature has been the implication that increasing input intensity leads to increasing risk. In this paper, a much less restrictive model and corresponding estimation techniques are brought to bear on individual farm data for 38 properties with 10 continuous years of production records. Perhaps not surprisingly, it is found that some inputs (especially those capital inputs which might normally be thought of as increasing the safety of production) tend to reduce risk.
A QUEUEING MODEL FOR EGG PRICE DETERMINATION
Authors: Strong S. M. , Wolanowski A. M.
Published: April 2012

The determination of the price paid to its suppliers and by its customers is a major task for some marketing authorities. The commodity arrives randomly at the authority's facility and is removed randomly by customers. Between arrival and departure, the commodity awaits processing, is processed (graded, packed), and awaits removal by a customer. It is suggested that this similarity to a queue enables a profit function, dependent on price, to be constructed. Determination of the price maximising this function is seen to be one solution to the price setting problem.
PROPERTY ENTITLEMENTS AND PRICING POLICIES FOR A MATURING WATER ECONOMY
Authors: Randall Alan
Published: April 2012

The Australian water economy is entering a mature phase characterised by inelastic supply of 'new' water and the need for expensive rehabilitation of aging projects. Thus, the policy focus will turn increasingly toward ways of restraining water demand and reallocating existing supplies. A prima facie case is made that the efficiency loss from current water pricing and allocation policy is significant. After considering the relevant welfare economics theory, the theory of administered prices and marketable property rights and some American proposals for reform, a system of transferable water entitlements is proposed and developed.
FARMERS' ATTITUDES TO RURAL ADJUSTMENT ASSISTANCE: RESULTS OF A SURVEY IN JEMALONG SHIRE, N.S.W.*
Authors: Robinson Chris , McMahon Pat , Gibbs Melissa
Published: April 2012

The Australian Government has provided adjustment assistance to the rural sector since 1970 under several schemes. The demand for assistance has been lower than expected, given the alleged size of the problem, particularly for the 'welfare' oriented provisions. The results of a survey of farmers' attitudes to the current Rural Adjustment Scheme are examined in an attempt to explain this phenomenon. Measures designed to ease financial difficulties or to facilitate on‐farm adjustment were much preferred to those designed to assist farmers to leave agriculture. Considerable confusion about the scheme was evident and many farmers thought that information about the scheme was inadequate. Better extension and counselling is suggested to improve information flows to farmers. The formulation of a more structured set of eligibility criteria is also suggested to reduce the complexity and uncertainty which farmers face when they are considering lodging an application for assistance.
RIGHTS TO CLEARED LAND AND THE CONTROL OF DRYLAND‐SEEPAGE SALINITY*
Authors: Hodge Ian D.
Published: April 2012

The phenomenon of the clearance of deep‐rooting vegetation leading to dryland salinity exhibits a number of characteristics which indicate the presence of market failure. These are discussed in the context of identifying an optimal level of clearance in a particular catchment. Various policies could be applied in order to correct for these problems. The potential for the use of taxes and regulations is examined and their limitations are identified. A scheme involving the use of transferable rights to cleared land is described and evaluated by means of a hypothetical example. Controls over land clearance will be more easily achieved when they are introduced at an early stage in the land development process.
BOOK REVIEWS
Authors: MORELLI EMERY A.
Published: April 2012

Book reviewed in this article:

Tarifl Politics‐ Australian Policy‐making 1960‐1980. By LEON GLEZER.

Agriculture in the Australian Economy (Second Edition, Revised and Enlarged). By D. B. WILLIAMS

Food and Agricultural Policy for the 1980s. By D. GALE JOHNSON

Investing In People. The Economics of Population Quality. (The 1980 Royer Lectures). By THEODORE W. SCHULTZ.

The Ultimate Resource. By JULIAN L. SIMON.

Future Dimensions of World Food and Population. By RICHARD G. WOOD

Resource Economics: An Economic Approach to Natural Resource and Environmental Policy. By ALANR ANDALL.

Consideration and Modelling of Risk in the Agribusiness Sector. By C. HENNIG HANF and G. SCHIEFER

On Rational Grounds: Systems Analysis in Catchment Land Use Planning. By DAVID BENNETT and JOHN F. THOMAS
AGRICULTURAL ECONOMICS, INTERDEPENDENCE AND UNCERTAINTY*
Authors: Anderson Jock R.
Published: April 2012

Interdependence has always been central to economics but assumes pressing importance for agricultural economists as they deal with industrialising agricultures. Continued unresolvable uncertainties, when properly recognised, also add to the challenge of relevant work in agricultural economics. The related roles of interdependence and uncertainty are illustrated through examples from the progress of agricultural technology and enhancement of food security.
DISTANCE TO INFORMATION SOURCE AND THE TIME LAG TO EARLY ADOPTION OF TRACE ELEMENT FERTILISERS
Authors: Lindner Robert K. , Pardey Philip G. , Jarrett Frank G.
Published: April 2012

Some hypotheses about the timing of farmers becoming aware of an innovation and the subsequent decision to use that innovation are derived from a recently developed, decision‐theoretic model of the adoption process. They are tested using empirical evidence on the time taken by early adopters of trace element fertilisers in S.A. to discover and decide to use this innovation. The central role of information search in the adoption process is emphasised and it is postulated that various distance measures provide a useful measure of information availability and reliability. The results of the empirical analysis are consistent with the hypothesised relationships. Another finding is the importance of distinguishing between early adopters who are genuinely innovative, and those potential later adopters who adopt early because they happen, by chance, to operate a farm in close proximity to another early adopter.
THE REPRESENTATION OF RISK IN ECONOMETRIC MODELS OF SUPPLY: SOME OBSERVATIONS
Authors: Brennan John P.
Published: April 2012

The high correlation between many of the measures used to represent risk in econometric models of supply is demonstrated. A case is made for a very simple measure, the moving range, to be used to represent risk in these models.
SUPPLY RESPONSE IN THE AUSTRALIAN EXTENSIVE LIVESTOCK AND CROPPING INDUSTRIES: A STUDY OF INTENTIONS AND EXPECTATIONS*
Authors: Fisher Brian S. , Munro Robyn G.
Published: April 2012

Most of the supply elasticity estimates reported for Australian agriculture are derived from equations estimated using time series data and incorporating ad hoc assumptions about price expectations. The authors' aim is to compare previously obtained supply elasticity estimates with those derived using theoretically more acceptable survey data on both producers' intentions and price expectations. Surveys were conducted in three regions in N.S.W., namely, the Southern Tablelands, the South‐West Slopes and a portion of the Western Division centred on Cobar. The results of the research show that there are no major differences between the supply elasticities derived using the traditional time series approach and those obtained using the survey data. This finding is reassuring, given the cost of collecting survey data.
BOOK REVIEWS
Authors: MORELLI EMERY A.
Published: April 2012

Book reviewed in this article:

ORANI A Multisectoral Model of the Australian Economy. By PETER B. DIXON, B. R. PARMENTER JOHN SUTTON and D. P. VINCENT.

Imperfect Markets in Agricultural Trade. By ALEX F. MCCALLA and TIMOTHY E. JOSLING

Grain Export Cartels. By A. SCHMITZ, A. F. MCCALLA, D. O. MITCHELL and C. CARTER.

Stabilisation of the International Grain Market. By J. C. BLOM.

Agricultural Marketing and Prices. By K. O. CAMPBELL and B. S. FISHER

The Agricultural Marketing System. By V. JAMES RHODES.

Agricultural Marketing. By BY J. W. BARKER.

The Australian Financial System After the Campbell Report. By J. O. N. PERKINS.

Agricultural Research and Technology in Economic Development. By PER PINSTRUP‐ANDERSEN.

Wild Pigs: Environmental Pest or Economic Resource? By BY C. A. TISDELL
UNDERWRITING AGRICULTURAL COMMODITY PRICES
Authors: Quiggin John C.
Published: April 2012

Underwriting schemes are increasingly being used as a basis for price policy in Australian agricultural industries. These policies simultaneously increase average returns and reduce the risk faced by producers. In this paper, conditions are discussed under which such a combination of policy targets may be desirable. The optimality properties of underwriting schemes in achieving these targets are examined and compared to those of alternative schemes. Aspects of underwriting scheme design are discussed.
RATIONAL EXPECTATIONS IN THE AUSTRALIAN WOOL INDUSTRY
Authors: Fisher Brian S.
Published: April 2012

The process by which producers form expectations has implications for model building and policy analysis. An econometric model of the Australian wool market is estimated. It is shown that the rational expectations hypothesis is not inconsistent with the data for both the period before the floor price scheme was implemented and since that date. This finding has important implications, since it has been shown that the welfare gains from stabilisation are small if producers form rational expectations.
EFFECTIVE RATES OF PROTECTION AND HIDDEN SECTORAL TRANSFERS BY PUBLIC AUTHORITIES
Authors: Kolsen H. M.
Published: April 2012

Government intervention changes the allocation of resources through effects on input and output prices. While explicit forms of intervention have been the subject of many studies, implicit forms of intervention have been given much less attention. The price and output policies pursued by public authorities systematically cross‐subsidise from densely populated to sparsely populated areas. Thus, their effects are in the opposite direction from the effects of tariffs and quotas. Examination of the effects of one form of intervention in isolation overstates the net effects of that intervention. Effective rates of cross‐subsidies must be taken into consideration when attempting to measure the impact of government intervention on resource allocation.
THE ECONOMICS OF INSURING CROPS AGAINST DROUGHT
Authors: Bardsley Peter , Abey Arun , Davenport Scott V.
Published: April 2012

The necessary conditions for the existence of a financially viable crop insurance scheme against drought are examined. A supply and demand model for crop insurance is developed which identifies the parameters that are critical to the efficiency of such a scheme. The values of these parameters are estimated by using data from the Australian wheat industry. It is found that crop insurance against drought would appear to be unattractive from an efficiency point of view.
EFFECTS OF PAST AUSTRALIAN WHEAT PRICE POLICIES ON KEY INDUSTRY VARIABLES
Authors: Myers Robert J. , Piggott Roley R. , MacAulay T. Gordon
Published: April 2012

Evidence is provided on the extent to which wheat price policies operating over the period 1953‐54 to 1983‐84 achieved objectives related to the levels and stability of key industry variables. The general findings are that the levels of achievement have been modest and that trade‐offs have been involved. This evidence is supplementary to the evidence already available from efficiency‐based studies.
TESTING FOR CHANGES IN THE STRUCTURE OF THE DEMAND FOR MEAT IN AUSTRALIA
Authors: Martin William J. , Porter Darrell
Published: April 2012

Quarterly data from 1962 to 1983 for beef, lamb, mutton, pig meat and poultry were used to test for constancy in the structure of meat demand in Australia. The cumulative sum, cumulative sum of squares and Farley‐Hinich tests were applied to a range of models to ensure that any rejection of stability was not due to an inappropriate functional form or omitted dynamics. Little evidence was found of a marked swing away from consumption of any meat, with the exception of mutton. The results suggest that changes in prices and in total consumer expenditure are far more important than changes in tastes as determinants of meat consumption.
A STATISTICAL ANALYSIS OF A PILOT SURVEY OF SALT‐AFFECTED DAIRY FARMS
Authors: Alaouze Chris M. , Read Michael , Sturgess N.H.
Published: April 2012

A small stratified sample was drawn from irrigated dairy farms judged to exhibit two degrees (high and low) of salting in the soil. Cobb‐Douglas production functions were fitted to time series and cross sectional data for each stratum. The results support the conclusion that the data from the two strata can be pooled and that the quality of the soil in this area can be modelled using an analysis of covariance approach. A preliminary confidence interval for the geometric mean of the ratio of the shadow price of water to the price of butterfat for farms in the sample was also calculated. This interval supports the hypothesis that rationed irrigation water is worth more to these farms than the price paid.
PROMOTION OF PRIMARY PRODUCTS — A VIEW FROM THE CLOISTER*
Authors: Quilkey John J.
Published: April 2012

This paper is a discourse on how promotion may contribute to the efficiency of consumption. The view is taken that, through its addition to the quantity of search with respect to product characteristics, promotion may enable consumers to allocate their expenditures more efficiently and yield additional revenue to producers of the promoted product. The central plea is for consistency in the identification of promotion objectives, the implementation of the promotion program and monitoring of the outcome. In an idiosyncratic way, the promotion objectives are framed as being related to price and income elasticities and it is argued that promotional outcomes should be monitored in terms of these elasticities. Supply shifts may complement promotion strategies to the advantage or disadvantage of producers and the outcomes in terms of producer surplus are examined for particular promotion strategies and shifts in linear supply functions.
MALLEE WHEAT FARMERS' DEMAND FOR CROP AND RAINFALL INSURANCE
Authors: Patrlck George F.
Published: April 2012

Producers' demand for a crop insurance program with indemnities based on their actual yields and a rainfall insurance program with indemnities based on area rainfall is analysed. Actuarial costs of these hypothetical programs are estimated. Tobit procedures are used to analyse factors influencing the amount which farmers would be willing to pay for the alternative insurance programs. Factors related to the absolute size of risk and capacity to bear risk, as well as personal characteristics and risk attitudes of producers, have effects on the demand for insurance as hypothesised. Problems of adverse selection are associated with the area yield‐based program, while both crop and rainfall insurance programs may involve some moral hazard. Producer participation in either program would be limited.
INDUSTRIAL ORGANISATION FOUNDATIONS OF TRADE POLICY MODELLING*
Authors: Hazledine Tim
Published: April 2012

General equilibrium models of Canada/US free trade have produced a wide range of predictions of the impact on the Canadian economy. This paper analyses the models from an 'industrial organisation' perspective, focusing on differences in assumptions about market elasticities and pricing behaviour. The approach succeeds in encompassing the range of predictions from the models. The results have implications for agricultural policy modelling.
FISHERY BUY‐BACK PROGRAMMES AND ECONOMIC WELFARE
Authors: Campbell Harry F.
Published: April 2012

Fishery buy‐back programmes reduce the availability to the industry of certain inputs used in the harvesting process, thereby increasing fishing costs and reducing the amount of effort applied to the fishery. The reduction in effort generates an economic benefit which must be weighed against the increased costs. The paper develops an economic model of a buy‐back programme which can be used to estimate the effect of the programme on economic welfare. The model is applied to the Tasmanian rock lobster fishery.
A COMPARISON OF RISK EFFICIENCY CRITERIA IN EVALUATING GROUNDNUT PERFORMANCE IN DROUGHT‐PRONE AREAS
Authors: Bailey Elizabeth , Boisvert Richard N.
Published: April 2012

This paper contributes to an evaluation of the performance of ground nuts in drought‐prone areas by estimating yield response functions to water from experimental data. They are combined with meteorological data to simulate yields by location. Efficient genotypes are identified by several risk criteria. Genotype rankings based on these risk criteria and simulated yields are different from those based on experimental data and plant scientists' traditional methods of evaluation.
SOCIAL COSTS OF REGULATION OF PRIMARY INDUSTRY: AN APPLICATION TO ANIMAL WELFARE REGULATION OF THE VICTORIAN PIG INDUSTRY*
Authors: Wilcox Christopher J.
Published: April 2012

The effects of state government regulation of primary industry are modelled. An analytical framework is presented for estimating the costs of regulation in terms of changes in economic surplus. The model permits trade between regions of the total market. An illustrative application of the framework is applied to proposed animal welfare regulation of the Victorian pig industry. Some regulations that may provide large gains with regard to the welfare of farm animals involve only small social costs compared to the gross value of production of the industry. Conversely, other regulations that potentially confer only small gains in animal welfare impose large social costs. The distribution of these costs is important. In general, consumers lose, as do some producers. Other producers gain. In some cases, producers in aggregate gain from regulation. Major beneficiaries, such as advocates of animal welfare regulations, are likely to bear little of the cost of regulation.
FORECASTING SAWNTIMBER CONSUMPTION: THE APPLICATION OF AN END‐USE MODEL*
Authors: Paul Phillip B. , Sar N.L. , Bui‐Lan Anh
Published: April 2012

A multi‐equation end‐use model is used to analyse the consumption of sawn‐timber in Australia. The forecasting ability of the model is evaluated. Simulations of the model are reported and implications for policy are discussed.
ECONOMIC OPTIMISATION OF SPRINKLER IRRIGATION CONSIDERING UNCERTAINTY OF SPATIAL WATER DISTRIBUTION*
Authors: Feinerman Eli , Shani Y. , Bresler E.
Published: April 2012

The study is focused on the development and the application of a stochastic economic optimisation model by which optimal levels of applied water and sprinkler spacing are determined. Data on crop‐water production function and uniformity of water application are taken from a sprinkler irrigation plot of sweet corn. It was found that a saving of irrigation water can be achieved not only by raising water prices but also by increasing application uniformity.
A FAMILY OF AGRONOMIC PRODUCTION FUNCTIONS WITH ECONOMIES OF SCOPE
Authors: Lloyd Peter J.
Published: April 2012

This paper derives a family of multiple‐output multiple‐input production functions from the underlying technologies. These technologies are represented by average yield functions for each of the commodities (crops) produced from a common pool of resources. The production functions are implicitly separable. Examples include the CRETH, translog, generalised power and generalised McFadden functions. Moreover, given a function which is a member of this family, the individual commodity yield and production functions can be recovered. Such implicitly separable multiple‐output production functions may exhibit economies or diseconomies of scope which reflect the interactions between outputs sharing a common pool of resources.
TOWARDS A COMPARISON OF CHEMICAL‐FREE AND CONVENTIONAL FARMING IN AUSTRALIA
Authors: Wynen Els , Edwards Geoff W.
Published: April 2012

The classes of benefits and costs, private and external, arising from a partial movement from conventional to chemical‐free farming are considered, a report is provided on a comparison of physical and financial characteristics of chemical‐free and conventional cereal/livestock farming in southeastern Australia, a key finding is that private net returns were similar for the two types of farmers, A favourable change in net externalities could be expected from a movement towards chemical‐free farming, policy implications relating to the taxation of chemical use in agriculture, and to research, extension and marketing are discussed.
PRODUCT CHARACTERISTICS AND ARBITRAGE IN THE AUSTRALIAN AND NEW ZEALAND WOOL MARKETS*
Authors: Angel C. , Beare Stephen , Zwart A.C.
Published: April 2012

The physical characteristics of wool are important determinants of its spinning properties, yarn quality and end use. The degree to which wools from different countries of origin may be substituted has important implications for the domestic marketing policies of Australia and New Zealand. The hypothesis examined in this paper is that the differences in wool prices can be explained by differences in the physical characteristics of the wool and that objective measures of these characteristics allow for effective arbitrage between these markets. The alternative hypothesis is that premiums or discounts exist owing to country of origin. A hedonic price analysis was conducted on wool prices in Australia and New Zealand using a balanced sample of sale lot data from the 1986‐87 selling season. In the year examined, there was no evidence of any price premiums associated with country of origin.
THE WILLINGNESS OF CONSUMERS TO PAY FOR ATTRIBUTES OF LAMB
Authors: Mullen John D. , Wohlgenant Michael K.
Published: April 2012

A contingent valuation approach has been used to estimate the willingness to pay by consumers for changes in leanness and portion size in lamb loin chops. Over 800 consumers were interviewed at four major shopping centres in Sydney. Consumers were prepared to buy loin chops with more fat cover at a discounted price but were unwilling to offer a premium for chops with a larger area of red meat.
ON THE NEGLECT OF DYNAMICS, RISK AND MARKET INSULATION IN THE ANALYSIS OF URUGUAY ROUND FOOD TRADE REFORMS*
Authors: Tyers Rodney
Published: April 2012

The substantial investment in models of international food markets prior to and during the Uruguay Round of international trade negotiations has been a mixed blessing so far as the prospects for reform are concerned. At worst, results from these models have misled the negotiations because they have most often ignored a primary concern lending domestic political support to food market interventions, namely the avoidance of risks borne of dependence on international markets. In this paper the reasons for market insulating policies are reviewed and their links with protection elucidated. Some errors that have stemmed from the application of 'standard' but inappropriate models are noted. Finally, the implications of extending the standard method to include dynamic behaviour and market insulating policies are examined.
COMBINATIONS OF BUFFER‐STOCKS AND BUFFER‐FUNDS FOR WOOL PRICE STABILISATION IN AUSTRALIA*
Authors: Moir Brian , Piggott Roley R.
Published: April 2012

In this paper a preliminary analysis is presented of a combined buffer‐fund and buffer‐stock as an alternative to a pure buffer‐fund or a pure buffer stock for stabilising wool prices. The alternatives analysed are designed so that each provides the same prices to producers as did the Reserve Price Scheme over the period of analysis. Least‐cost combinations of policy instruments are derived. The results show that there is considerable potential for cost savings to be made by combining buffer‐fund and buffer‐stock instruments.
SOME OLD TRUTHS REVISITED
Authors: Piggott Roley R.
Published: April 2012

The primary objective in this paper is to 'promote' the use of equilibrium displacement modeling, or comparative static analysis of general function models, as a research tool in agricultural price and policy analyses. This is by no means a new tool, but it does seem to be used much less in Australia than it is in the US where it has been the basis of several important journal papers in recent times, The paper includes applications to: (a) reproduce important results obtained by Euse (1958) regarding total elasticities; and (b) examine the price premium argument that has been advanced in favour of single‐desk selling arrangements. The latter is the secondary objective in the paper. Whilst equilibrium displacement modelling has its shortcomings, it is a research tool that can provide useful results with few assumptions. It can be a substitute for econometric modelling when resource and time constraints are binding. The application to the price‐premium argument re‐confirms the doubts that many analysts have expressed about single‐desk selling.
RESOURCE MANAGEMENT, SUSTAINABILITY AND PROPERTY RIGHTS IN NEW ZEALAND*
Authors: Johnson R.W.M.
Published: April 2012

Sustainable land management objectives in New Zealand have recently been redefined in the Resource Management Act 1991. The new legislative framework can be viewed in part as an adjustment in existing property rights to meet resource use externalities. An understanding of the structure and characteristics of property rights in land clarifies a number of issues in the area of economic efficiency and administrative practicality, and focusses on areas where appropriate solutions to externalities may be difficult to achieve.
PROSPECTS FOR CONTINGENT VALUATION: LESSONS FROM THE SOUTH‐EAST FORESTS1
Authors: Bennett Jeffrey W. , Carter M.
Published: April 2012

The Contingent Valuation Method (CVM) has been strongly criticised in Australia following two prominent applications. The aims in this paper are to review these criticisms and to demonstrate how, through an application of the method, these potential problems were addressed. The results of the application — a valuation of the conservation benefits of the National Estate forests of Southeastern Australia — are presented. A key feature of the application was the use of focus group testing in the questionnaire design phase. Finally, an assessment is made of the future prospects for the use of the CVM in Australia.
ALTERNATIVE BREEDING INVENTORY SPECIFICATIONS IN A LIVESTOCK MARKET MODEL
Authors: Vere David T. , Griffith Garry R. , Bootle B.W.
Published: April 2012

The procedures adopted for incorporating breeding decisions in a livestock market model have implications for the simulation of the model. Specifically, there is a need to consider the nature of the biological lags between livestock breeding decisions and outputs, and how these are incorporated in the breeding inventory used in such a model. In this paper, five alternative breeding inventory specifications are used in a structural econometric model of the Australian prime lamb market. The predictions of lamb slaughterings and of price responses of lamb producers are affected by the specification of the lamb breeding inventory used. The extent to which the modelling results approximated reality was substantially improved when disaggregated and seasonally allocated data were used to estimate lamb breeding inventories.
AN OPTIMAL MANAGEMENT MODEL FOR INTENSIVE AQUACULTURE — AN APPLICATION IN ATLANTIC SALMON*
Authors: Hean Robyn L.
Published: April 2012

In this paper the optimal management strategy for intensive aquaculture is viewed in terms of a combined strategy of releasing the optimal number of recruits and harvesting those recruits at the optimal harvesting time. A model which can be used to determine the optimal management strategy is developed. In the model the optimal harvesting model documented by Bjorndahl (1988, 1990) in which harvesting and feed costs are considered, is extended by including release costs and how they influence the optimal number of recruits. The model forms the basis for an empirical analysis in which the optimal management strategy for a yearclass of Atlantic salmon farmed in Australia during 1989‐91 is considered.
GOVERNMENT VERSUS PRIVATE QUALITY ASSURANCE FOR AUSTRALIAN FOOD EXPORTS
Authors: Wills Ian R. , Harris Jane
Published: April 2012

Most foodstuffs have quality attributes that are difficult to determine prior to purchase. Thus quality assurance is an inherent problem in food exporting. Private quality assurance can succeed if exporters can credibly signal that they have much to lose from cessation of purchases. If exporters do not provide credible quality signals, and foreign importers judge food quality according to country of origin, honest exporters can suffer negative spillovers from others' cheating under either government or private quality assurance. For both economic and political reasons, the best choice between government and private quality assurance will differ between foods and importing countries.
A HEDONIC PRICE FUNCTION FOR AUSTRALIAN PREMIUM TABLE WINE*
Authors: Oczkowski Edward
Published: April 2012

A hedonic price function, relating the price of Australian wine to its attributes, is estimated. Six attribute groups are found to be statistically important in explaining deviations from average wine prices, i.e., quality, cellaring potential, grape variety/style, grape region, grape vintage and producer size. Various interaction terms between these variables and the impact of the year of marketing are also modelled. The consequent marketing implications for producers and consumers are discussed.
DOES TECHNICAL PROGRESS IN AGRICULTURE ALLEVIATE POVERTY? A PHILIPPINE CASE STUDY*
Authors: Coxhead Ian A. , Warr Peter G.
Published: April 2012

We examine the impact of technical progress in agriculture on changes in measured poverty and aggregate welfare in a developing country. Using a small general equilibrium model, we show how the economic components of an observed change in poverty can be isolated to expose the significance of intersectoral linkages and the economic roles of changes in relative commodity and factor prices. Variation in the measured rate and distribution of poverty alleviation depends somewhat on the choice of poverty measure, but more substantively on structural assumptions and the effects of policy interventions in agricultural markets.
ULYSSES REVISITED — A CLOSER LOOK AT THE SAFE MINIMUM STANDARD RULE
Authors: Rolfe John
Published: April 2012

The Safe Minimum Standard (SMS) Rule has been developed as a decision rule involving environmental assets, particularly species, that face some risk of extinction. The SMS rule has been presented by Bishop (1978) (1979) and Randall (1991) as a better decision process than the use of cost benefit analysis (CBA). This paper explores the relationship between the SMS rule and CBA. It shows that there is a tandem effect in operation because the use of both rules rely on the same underlying preferences in society. There is potential for the two rules to achieve the same results, and doubt over whether the SMS rule is an independent control over CBA.

Instead, the SMS rule may simply operate as a nagging mechanism for issues of particular interest. Its use can be seen as a signal to switch to a more intensive examination of costs and benefits, and justified in this format because the benefits of more accurate decisions outweigh the costs of operating the SMS rule. The application of the SMS rule will vary according to the justification for its use.
ANALYSIS OF THE TECHNICAL EFFICIENCY OVER TIME OF WEST JAVANESE RICE FARMS
Authors: Trewin Ray , Weiguo L. , Erwidodo Sjaiful , Bahri Sjaiful
Published: April 2012

The high costs and effectiveness of Indonesia's current mix of policies aimed at maintaining rice self‐sufficiency, for example fertiliser and other subsidies, has been questioned. Consequently, attention has turned to developing policies to increase farmers yields through efficiencies, for example as a result of better extension. The main issue investigated in this article is whether existing yields can be significantly improved through increasing the efficiency of individual farmers. Production frontiers are estimated and technical efficiencies/inefficiencies predicted from panel data and for one year at a time. Different results are explained in relation to a number of aspects, especially the rate of adoption of new technologies, and policy actions are recommended. The robustness of the analysis is examined as conclusions obtained from past analyses have often been inconsistent.
NON‐COMPENSATORY PREFERENCE STRUCTURES IN NON‐MARKET VALUATION OF NATURAL AREA POLICY
Authors: Lockwood Michael
Published: April 2012

Non‐compensatory preferences may form a significant component of individuals' values for non‐market goods such as natural areas, especially in the context of a reduction in environmental quality. The widespread neglect of such preferences can result in erroneous estimates of changes in economic welfare. Non‐market valuation using techniques such as contingent valuation therefore need to take into account the possibility that some individuals hold noncompensatory preferences. The formal structure of the lexicographic noncompensatory ordering is described, and the theoretical implications of an individual holding such preferences over some region of goods space is examined. A method for the empirical identification of non‐compensatory preference orderings is outlined.
IDENTIFICATION OF FACTORS WHICH INFLUENCE THE TECHNICAL INEFFICIENCY OF INDIAN FARMERS
Authors: Coelli Tim J. , Battese George E.
Published: April 2012

The agricultural production of Indian farmers is investigated using a stochastic frontier production function which incorporates a model for the technical inefficiency effects. Farm‐level data from the International Crops Research Institute for the Semi‐Arid Tropics (ICRISAT) are used. Variables considered in the model for the inefficiency effects include the age and level of education of the farmers, farm size and the year of observation. The parameters of the stochastic frontier production function are estimated simultaneously with those involved in the model for the inefficiency effects. This approach differs from the usual practice of predicting farm‐level inefficiency effects and then regressing these upon various factors in a second‐stage of modelling. The results indicate that the above factors do have a significant influence upon the inefficiency effects of farmers in two of the three villages considered.
BOOK REVIEWS
Authors: MORELLI EMERY A.
Published: April 2012

Book reviewed in this article:

Marketing Beef in Japan. By WILLIAM A. KERR KURT K. KLEIN, JILL E. HOBBS and MASARU KAGATSUM.

The Future Eaters: an Ecological History of the Australasian Lands and People. By T. FLANNER

The Economics of Agriculture: Volume I, Selected Papers of D Gale Johnson; Volume II, Papers in Honor of D Gale Johnson. Edited by JOHN M. ANTLE and DANIEL A. SUMNER

Salinisation of Land and Water Resources. By F. GHASSEMI, A.J. JAKEMAN and H.A. NIX
ON‐FARM FACTORS INFLUENCING INVESTMENT IN CROP SOWING MACHINERY*
Authors: Kingwell Ross S.
Published: April 2012

Farmers in grain industries make important decisions about investment in crop sowing machinery. This paper shows how some on‐farm factors affect profit‐maximising levels of investment in crop sowing machinery. The paper examines the effect on optimal investment of discontinuities in sowing opportunities, varietal portfolios and soil portfolios.
MEASURING PRODUCTIVITY GROWTH IN AUSTRALIAN BROADACRE AGRICULTURE
Authors: Mullen John D. , Cox Thomas L.
Published: April 2012

An important source of growth for Australian broadacre agriculture has been technical progress. We compare alternative measures of productivity growth including the traditional Tornqvist‐Thiel total factor productivity index; variants of this approach that allow decreasing returns to scale; the Fisher ideal index; other nonparametric measures that do not impose particular functional forms and an econometric estimate from a translog industry cost function. The annual growth in productivity in broadacre agriculture over the period from 1953 to 1994 was in the range of 2.4 to 2.6 per cent and hence was quite robust to measurement technique.
HOW DO WE WANT TO GROW OLD? ANTI‐AGEING‐MEDICINE AND THE SCOPE OF PUBLIC HEALTHCARE IN LIBERAL DEMOCRACIES
Authors: SCHWEDA MARK , MARCKMANN GEORG
Published: April 2012

Healthcare counts as a morally relevant good whose distribution should neither be left to the free market nor be simply imposed by governmental decisions without further justification. This problem is particularly prevalent in the current boom of anti‐ageing medicine. While the public demand for medical interventions which promise a longer, healthier and more active and attractive life has been increasing, public healthcare systems usually do not cover these products and services, thus leaving their allocation to the mechanisms of supply and demand on the free market. This situation raises the question on which basis the underlying preferences for and claims to a longer, healthier life should be evaluated. What makes anti‐ageing medicine eligible for public funding? In this article, we discuss the role of anti‐ageing medicine with regard to the scope and limits of public healthcare. We will first briefly sketch the basic problem of justifying a particular healthcare scheme within the framework of a modern liberal democracy, focusing on the challenge anti‐ageing interventions pose in this regard. In the next section, we will present and discuss three possible solutions to the problem, essentialistic, transcendental, and procedural strategies of defining the scope of public healthcare. We will suggest a procedural solution adopting essentialistic and transcendental elements and discuss its theoretical and practical implications with regard to anti‐ageing medicine.
BROADENING THE SCOPE OF DEBATES AROUND STEM CELL RESEARCH
Authors: LYSAGHT TAMRA , CAMPBELL ALASTAIR V.
Published: April 2012

Over the last decade, stem cell research has generated an enormous amount of public, political and bioethical debate. These debates have overwhelmingly tended to focus on two moral issues: the moral status of human embryos and the duty to care for the sick and vulnerable. This preoccupation, especially on the question of moral status, has not only dichotomized the debate around two fundamentally incommensurable positions, it has come at the cost of other important issues largely being ignored. In highlighting some of the bioethical and regulatory deficiencies of this fixation, we draw on recent developments in the experimental use of autologous adult stem cells to argue for a more inclusive approach to the ethical issues surrounding stem cell research.