A NOTE ON HIDDEN GAINS AND LOSSES OF BUFFER STOCK SCHEMES FOR WOOL |
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Authors: | A.C. Lewis |
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Abstract: | This note is concerned with one aspect of the methodology for examining the gains and losses of a buffer stock scheme for wool. It is shown that it is incorrect to debit interest due on capital tied up in stocks of wool without, at the same time, crediting a portion of this to the grower. The errors that can occur in calculations that do not take account of the charged time distribution of growers' receipts are demonstrated. |
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