TECHNOLOGICAL CHANGE IN THE ARID ZONE OF NEW SOUTH WALES

The results described challenge the generally accepted interpretation of the factors underlying the changes in sheep numbers in the arid zone of New South Wales. The extent to which long-run changes in rainfall have been ignored is highlighted. Estimates of output per man are derived, using the C.E.S. production function, which show that there has been a small positive rate of technological change. Three-quarters of such technological advance has been due to factors which affect numbers of sheep carried, the remainder due to factors affecting wool production per sheep.