DECOMPOSING THE VARIANCE OF GROSS REVENUE INTO DEMAND AND SUPPLY COMPONENTS

Roley R. Piggott

Australian Journal of Agricultural Economics, 1978, vol. 22, issue 2-3, 13

Abstract: Some recent analyses relating to gross revenue instability have used a procedure for decomposing the variance of gross revenue into components attributable to price variability, quantity variability and interaction between these. This paper offers some criticisms of the procedure and outlines an alternative procedure which divides the variance of gross revenue into components due to demand variability, supply variability and interaction between these. The procedure is used to investigate the causes of instability in quarterly beef revenues in the Australian beef industry. Since demand and supply variability are both important contributors to beef revenue instability, direct market intervention to stabilise beef industry revenues would be a complex and risky task.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Date: 1978
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://ageconsearch.umn.edu/record/22725/files/22030145.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ajaeau:22725

DOI: 10.22004/ag.econ.22725

Access Statistics for this article

More articles in Australian Journal of Agricultural Economics from Australian Agricultural and Resource Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().