A METHOD FOR EVALUATING SUPPLY RESPONSE TO PRICE UNDERWRITING

Robert Fraser

Australian Journal of Agricultural Economics, 1988, vol. 32, issue 01, 15

Abstract: In this paper a method for evaluating the supply response of individual producers to a price underwriting scheme is presented. The method includes precise formulae to take account of the impact of price underwriting on the producer's uncertain conditions. The Australian Wheat Board's guaranteed minimum price scheme is taken as a specific example of price underwriting in practice. Results show the scheme to lead to only relatively small supply responses. The impact on producer behaviour of an increase in price uncertainty in the presence of an underwriting scheme is also demonstrated in the paper.

Keywords: Demand and Price Analysis; Risk and Uncertainty (search for similar items in EconPapers)
Date: 1988
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Citations: View citations in EconPapers (14)

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Working Paper: A Method for Evaluating Supply Response to Price Underwriting (1988)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ajaeau:22921

DOI: 10.22004/ag.econ.22921

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