A METHOD FOR EVALUATING SUPPLY RESPONSE TO PRICE UNDERWRITING

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.


Issue Date:
Apr 04 1988
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/22921
Published in:
Australian Journal of Agricultural Economics, Volume 32, Number 1
Page range:
22-36
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-24

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