A Method for Evaluating Supply Response to Price Underwriting

Robert Fraser

No 315424, Discussion Papers from University of Western Australia, School of Agricultural and Resource Economics

Abstract: This paper presents a method for evaluating the supply response of individual producers to a price underwriting scheme. 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 paper also demonstrates the impact on producer behaviour of an increase in price uncertainty in the presence of an underwriting scheme.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 18
Date: 1988
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Citations: View citations in EconPapers (12)

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Journal Article: A METHOD FOR EVALUATING SUPPLY RESPONSE TO PRICE UNDERWRITING (1988)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwapdp:315424

DOI: 10.22004/ag.econ.315424

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