WOOL PRICE STABILISATION AND PROFIT RISK FOR WOOL USERS

John Quiggin

Australian Journal of Agricultural Economics, 1983, vol. 27, issue 01, 13

Abstract: It has often been suggested that more stable wool prices would lead to an outward shift in the long-run demand for wool. To assess this claim it is necessary to examine different sources of risk and instability in wool prices and their impact on the risk borne by wool users. A model is presented in which the input and output decisions of a wool processor are related to interactions between the wool and yarn markets. It is concluded that, if fluctuations in final demand or exchange rates are the major sources of instability, the long-run effect of stabilising prices is to increase the risk faced by wool users and reduce that faced by wool growers.

Keywords: Demand and Price Analysis; Risk and Uncertainty (search for similar items in EconPapers)
Date: 1983
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/22823/files/27010031.pdf (application/pdf)

Related works:
Journal Article: WOOL PRICE STABILISATION AND PROFIT RISK FOR WOOL USERS (1983)
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:22823

DOI: 10.22004/ag.econ.22823

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 ().