ON THE HIDDEN REVENUE EFFECTS OF WOOL PRICE STABILISATION IN AUSTRALIA: INITIAL RESULTS

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.     

EFFECTS OF NON-PRICE EXPORT PROMOTION: SOME EVIDENCE FOR COTTON*

An Annington-type trade model is estimated to determine the effects of government-subsidized export promotion on the demand for U.S. cotton in the Pacific Rim. Results show a significant relationship between promotion expenditures and U.S. market share in four of the six countries examined. One of the two countries exhibiting a non-significant effect had very low promotion expenditures, suggesting that a minimal level of funding may be necessary to achieve a market response. The hypothesis that export promotion has a carryover period lasting beyond one year in general is supported by the data. The question of the economic impacts of export promotion on domestic producers and taxpayers must await additional research.     

SOME EMPIRICAL EVIDENCE IN UNORGANIZED RURAL CREDIT MARKETS*

In studies discussing the high rates of interest observed in unorganized rural credit markers emphasis has traditionally been given to supply factors as sources of the high interest rates and sometimes with the implication that the farmer is forced to use this credit in a less than optimal manner. The thrust of this article is to offer evidence that the farmer in the unorganized marker is willing on perfectly rational economic grounds to accept credit on such terms. The evidence comes from a study of the marginal productivity of capital of farmers operating in the informal market in Apatzingan county, Michoacan. Mexico. The high marginal value products of capital obtained over a reasonably large range demonstrate that the farmers in the area are willing on economic grounds to accept high rates of interest charged by lenders. Implications of these findings with respect to other areas and agricultural policy are set forth. Dans les études portant sur les faux ?intérêts élevés que ?on. recontre dans les marchés de credit rural non organisés. ?attention a été traditionnellement atriré sur ?offre comme éant la cause de ces laux élevés er, par voie de conséquence. que le fermier soir parfois obligé?utiliser ce credit dune façon qui n'est pas la meilleure. ?essentiel de cet article esr de montrer que. dans ce type de marché le fermier est prêt à accepter un credir dans ces conditions. pour des raisons économique parfaitement rationnelles. La démonstration apparait dans ?érude du rendement marginal du capital réalisée auprès des Fermièrs du marché non organisé?Apatzingan au Mirhoacan Mexiqueô. Le haut rendement marginal du capital. obtenu sur une période sufjlsamment grande. montre que les fermiers de cette region. pour raisons économiques. sont disposés à acceprer les taux ?intérêts élevés exigés par les prêteurs. Les implicarions de ces conclusions quonr aux autres région er quanr à la politique agricole sont énoncées.     

SOME CIRCUMSTANCES IN WHICH PRICE STABILIZATION BY THE WOOL COMMISSION REDUCES INCOMES*

Stabilization of wool prices (which is partially achieved by the Wool Commission) may reduce the average annual net income (surplus) of growers and also of manufacturers of wool. The argument that the surplus of growers may be reduced is based upon Massell's extension of Oi's hypothesis. The possibility of falls in the surplus of manufacturers if wool prices are stabilized has a different basis. If wool prices are stabilized by buffer stocks, manufacturers find that their supplies are more variable than in the absence of controls. Consequently, they experience greater average annual cost if their marginal operating costs are increasing. Unless there are substantial revenue gains to processors, their surplus falls. The argument is also applicable to buffer stock schemes for other primary products.     

COMBINATIONS OF BUFFER-STOCKS AND BUFFER-FUNDS FOR WOOL PRICE STABILISATION IN AUSTRALIA*

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.     

THE WOOL BOARD'S SECOND REPORT ON MARKETING: A REVIEW ARTICLE

The second report on Wool Marketing by the Australian Wool Board is critically appraised. Particular attention is given to the proposals for elimination of small lots, price averaging and supply management. The presumption that price stabilization is good and the conclusion that private buying is bad are also discussed in detail.     

ECONOMIC EFFECTS OF RESEARCH INTO TRADED GOODS: THE CASE OF AUSTRALIAN WOOL

The final incidence of benefits and costs of wool industry research and development (R&D) undertaken in Australia depends greatly on the nature of the R&D and the way it is funded. Using preferred parameter values, the Australian share of benefits from farm-level R&D is 58 per cent (falling to 40 per cent if there is 50 per cent adoption of the new technology by producers overseas); the Australian shares of benefits from wool-processing R&D ere 24 per cent (topmaking) and 27 per cent (textile-processing). Under current funding arrangements, an Australian wool tax provides about one-eighth of total R&D funds, a matching government grant provides another one-eighth, and other public sector funds make up the remaining three-quarters. Under these arrangements, the final incidence of the costs is 95 per cent on Australians (mostly taxpayers at large), and the wool industry bears only 12.5 per cent of the costs of its R&D. One implication is that a wool tax alone is a more equitable and efficient means of financing wool-industry R&D than the current arrangements.     

EFFECTS OF PRICING DECISIONS OF A STATUTORY MARKETING BOARD: A CASE STUDY

Applying econometric analysis to a model recently used by Parish, this article examines the short-run implications for consumers and producers of the pricing decisions of the Western Australian Egg Board over the period 1953-54 to 1962-63.     

THE EFFECTS OF FLEXIBLE EXCHANGE RATES ON AUSTRALIAN WOOL PRICES*

The implication of price stabilisation under a volatile exchange rate is an increasingly volatile price denominated in a foreign currency. Time series analysis is used to model the relationship between exports, prices and AWC stocks. This model is used to assess the distribution of the impact of exchange rate shocks on prices denominated in local and foreign currencies. It is found that the AWC has significantly reduced the impact of exchange rate shocks on domestic prices.     

THE NATURE OF PRICE MOVEMENTS DURING SINGLE SALES FOR THREE INDIVIDUAL WOOL TYPES SOLD IN SYDNEY

Price series for three wool types sold in Sydney are tested for the presence of serial correlation using the von Neuman ratio. The results indicate that it is unusual to find significant serial correlation between prices during a single sale. These results have implications for the use of various statistical techniques in wool marketing research and for buying tactics in the market generally.     

小麦价格政策对新疆农户供给行为影响的实证分析

［目的］价格政策是影响农户供给行为的重要因素,研究小麦价格政策对小麦产量和播种面积的影响,有助于理顺小麦价格形成机制,科学制定补贴方案,合理调控市场供求,确保口粮安全和农民增收。［方法］文章选取小麦产量、播种面积、综合价格政策等指标,分别构建C—D函数模型,以衡量各变量对新疆小麦产量和播种面积的影响。［结果］（1）对小麦产量有正向影响的指标按其作用由大到小排序依次为农业机械总动力、小麦播种面积、化肥使用量,而农业劳动力和农作物成灾面积对小麦产量具有负影响。（2）有效灌溉面积对小麦播种面积的影响最大,农作物受灾面积对小麦播种面积的影响最小,综合价格政策对小麦播种面积的弹性系数为019。（3）综合价格政策对新疆农户供给行为的影响机制是通过影响小麦播种面积进而影响小麦产量供给。［结论］扩大绿色有机小麦生产规模、增强价格政策调控、提升小麦有效灌溉水平和加强农业科技应用是提升新疆小麦供给水平和促进农民增收的有效途径。