|Home > Spatial Equilibrium Analysis, Social Welfare and Rural Policy: The Case of the Wool Marketing Innovations and Reforms|
Radical wool marketing changes are mooted by the Australian Wool Corporation. While these intentions include wide ranging increases in market power for this supreme marketing authority, the overall proposals in their entirety, are argued as necessary to operationalize newly available wool selling and handling innovations. Supporting empirical evidence on the gains from adopting these innovations relies on spatial equilibrium models not fully in accord with the economic theory on which they are based. This paper sets out the shortcomings of these back-up studies. Based on a reconsideration of the theoretical premises, counter policy measures are advanced for consideration.