Showing papers in "Australian Journal of Agricultural and Resource Economics in 1977"
TL;DR: In this article, a statistical model for a production frontier that is consistent with the traditional (nonstochastic) definition of a production function given in microeconomic theory is proposed. But the model is restricted to the familiar average production function and an envelope production function.
Abstract: This paper considers a statistical model for a production frontier that is consistent with the traditional (nonstochastic) definition of a production function given in microeconomic theory Limiting cases of the model are the familiar average production function and an envelope production function Maximum-likelihood estimators for the parameters of the model are defined The three related models are applied in the estimation of a production frontier for the Pastoral Zone of Eastern Australia with use of data from the Australian Grazing Industry Survey
1,530 citations
TL;DR: In this article, the authors show the magnified effect of mineral discoveries on the rents of factors specific to minerals, and the squeeze exerted on the prices of other tradeables, and they also show that a social gain is still possible even if outputs of other goods do not change, while the price of non-tradeable goods can be expected to rise or decrease.
Abstract: R. G. Gregory's article on the effects of mineral discoveries on the Australian economy (Australian Journal of Agricultural Economics, August 1976) has attracted much attention. While the partial-equilibrium nature of his model has enabled it to be absorbed readily, it has the usual theoretical limitations of such analyses. Allowing for general equilibrium repercussions, but still accepting his general assumptions, some of Gregory's conclusions regarding the impact of new mineral discoveries require modification or extension:
(a)
Although production of goods other than minerals can be expected to decline, the production of some goods in this category may rise;
(b)
A social gain is still possible even if outputs of other goods do not change;
(c)
While the price of non-tradeable goods can be expected to rise, production of non-tradeables may increase or decrease.
We also show the magnified effect of mineral discoveries on the rents of factors specific to minerals, and the squeeze exerted on the rents of factors specific to other tradeables.
101 citations
TL;DR: In this article, a model of derived demand for primary factors of production, land, labour and capital is formulated to enable inferences to be made about the characteristics of the unspecified production function.
Abstract: Studies of the ease of substitution between inputs in production have generally been carried out within a production framework of an explicit functional form. In this study, a somewhat different approach is followed. A model of derived demand for primary factors of production, land, labour and capital is formulated to enable inferences to be made about the characteristics of the unspecified production function. The model is used to obtain estimates of the pairwise Allen-Uzawa substitution elasticities which are secondary parameters of the underlying production function. The reported FIML estimates from aggregate time series data for the period 1920/21 to 1969/70 indicate very low and marginally different substitution elasticities between different pairs of factors, suggesting that both the Cobb-Douglas and CES production function specifications for the Australian agricultural sector are inappropriate.
20 citations
TL;DR: In this paper, a stochastic model appropriate to rubber production is developed and the results suggest that efforts should be directed towards establishing bench mark maximum annuities as guides to more economic replanting decisions rather than emphasizing earlier replanting per se.
Abstract: Recognizing the lack of realism in optimal replacement analyses that assume constant prices and yield patterns over time, a stochastic model appropriate to rubber production is developed. Data drawn from Peninsular Malaysia are used to implement the model. The results suggest that efforts should be directed towards establishing bench mark maximum annuities as guides to more economic replanting decisions rather than emphasizing earlier replanting per se. The significance of price stabilization policies also becomes evident.
19 citations
TL;DR: In this paper, a simple production function which avoids these restrictions is proposed and alternative estimation procedures are discussed and both maximum likelihood and multistage estimators are discussed both for single and multi-stage estimators.
Abstract: Risky production functions which are commonly in use are shown to be very restrictive. In particular, such functions cannot describe technologies where inputs marginally reduce risk. A simple production function which avoids these restrictions is posited and alternative estimation procedures are discussed. Both maximum likelihood and multistage estimators are discussed.
18 citations
TL;DR: In this article, the potential for manipulating the policy variables to foster more rapid adoption of new agricultural technology is discussed, and an empirical analysis of the impact of a supervised credit programme in Guatemala on farm performance and farmer decision-making is presented.
Abstract: Restrictions on input use frequently accompany the granting of institutional credit to farmers in developing agriculture. A general economic framework is suggested to analyze the net social benefits of such a policy. The paper discusses the potential for manipulating the policy variables to foster more rapid adoption of new agricultural technology. An empirical analysis of the impact of a supervised credit programme in Guatemala on farm performance and farmer decision-making is presented.
17 citations
TL;DR: In this paper, the authors present some estimates of cost functions for primary schools in rural areas of New South Wales, combining conventional statistical methods with synthetic procedures based on the technology of schooling.
Abstract: Rural depopulation has put in question the economic viability of many rural institutions. This paper discusses a number of the important conceptual issues that need to be considered when examining the economics of one group of rural institutions, namely schools. Measurement of educational output in particular is fraught with many difficulties. The paper then presents some estimates of cost functions for primary schools in rural areas of New South Wales. The approach combines conventional statistical methods of deriving cost functions with synthetic procedures based on the technology of schooling. It is found that economies and diseconomies of size do exist with respect to certain costs, but it is not clear whether savings can be realized from consolidation of schools, due to the existence of extra pupil transport costs resulting from consolidation.
16 citations
TL;DR: In this article, the authors used observations on visitation rates to estimate Clawson demand functions for a non-priced recreation commodity, namely, the Milford Track located in the Fiordland National Park of New Zealand.
Abstract: This paper uses observations on visitation rates to estimate Clawson demand functions for a non-priced recreation commodity, namely, the Milford Track located in the Fiordland National Park of New Zealand. Different classes of user with potentially different demand elasticities are identified, and shadow prices consistent with revenue maximization of a discriminating and non-discriminatory monopolist tourist authority are estimated. Alternative maximum revenue and consumers' surplus valuations are presented which correspond to different concepts of measures of willingness to pay for use, including travel costs and the opportunity cost of time.
13 citations
TL;DR: The Australian Meat Board (AMB) can influence the quantities sent to and the prices received for Australian beef and veal in the domestic and various export markets through its power to grant export licences and the conditions to be met in obtaining export licences as discussed by the authors.
Abstract: The Australian Meat Board (AMB) can influence the quantities sent to and the prices received for Australian beef and veal in the domestic and various export markets Through its power to grant export licences and the conditions to be met in obtaining export licences the AMB can adopt the role of a price discriminating monopolist without supply control This paper evaluates the price, quantity, efficiency and distribution effects of the export diversification scheme introduced by the AMB in 1968, of some modified schemes proposed in 1976, and of an alternative system whereby rights to export to premium export markets with quota restrictions are auctioned
13 citations
TL;DR: In this paper, a simulation model of the typical block in Area III of the Brigalow Scheme has been constructed and used to evaluate experimentally the financial performance of various growth strategies.
Abstract: The Brigalow Scheme has been one of Australia's largest dryland development projects since World War II. Large sums of private and public capital have been invested to create 247 new farm firms. Planning the development of these new properties is a complex task. A simulation model of the typical block in Area III of the Brigalow Scheme has been constructed and used to evaluate experimentally the financial performance of various growth strategies. Use of a conjugate directions search procedure with this model has allowed growth strategies to be identified which maximize net worth subject to a low risk of financial failure. These strategies are compared with development programmes which have already been implemented. Significant conclusions are reached both with respect to future management strategies and future land development policies. Methodological advances incorporated in the simulation model are also discussed. 1977 The Australian Agricultural Economics Society
6 citations
TL;DR: In this article, the authors used spectral analysis to test hypotheses relating to regular four-year cycles in the Australian pig industry and found that annual cycles in production, slaughterings and prices are only evident in pig prices.
Abstract: Spectral analysis is used to test hypotheses relating to regular four-year cycles in the Australian pig industry. The data point to the existence of annual cycles in production, slaughterings and prices, but four-year cycles are only evident in pig prices. Relationships between these series are also examined by cross-spectral analysis
TL;DR: In this paper, the degree to which farm labour resources are employed in off-farm activities in Australia is examined and the main conclusion drawn from the evidence available is that, while in aggregate part-time farming is a fairly minor activity, in some sectors it is increasing in importance and constitutes a considerable outlet for farm based labour resources.
Abstract: Past studies of the farm sector have concentrated on the use of farm based resources in the farm context alone. Changes in the economic environment have widened the opportunities available to these resources and have thus tended to make this narrow definition of the farm firm less relevant. Some recognition of this situation has emerged in more recent studies. The aim of this note is to collate and examine the degree to which farm labour resources are employed in off-farm activities in Australia. The main conclusion drawn from the evidence available is that, while in aggregate part-time farming is a fairly minor activity, in some sectors it is increasing in importance and constitutes a considerable outlet for farm based labour resources.
TL;DR: In this article, a thirty-equation model of the Australian agricultural sector is specified in which farm output, stocks and exports and the domestic demand for farm products are endogenous, as well as farm, export and retail prices.
Abstract: Several farm sector econometric models are reviewed initially and the aggregation problem highlighted. A thirty-equation model of the Australian agricultural sector is specified in which farm output, stocks and exports and the domestic demand for farm products are endogenous, as well as farm, export and retail prices. Disaggregation is into food and non-food components of unprocessed output, and the processing of food is traced through to final demand. The model is estimated by a modified 2SLS procedure using quarterly data covering the period 1960-1970.
TL;DR: In this paper, a review of crop-insurance schemes is followed by a discussion of a guaranteed-yield, cropinsurance plan, which is applied on a regional basis for wheat and sorghum production in N.W.
Abstract: A review of crop-insurance schemes is followed by a discussion of a guaranteed-yield, crop-insurance plan. General formulae for the distribution function and mathematical expectation of indemnities for the insurance plan are presented in terms of the distribution of crop yields. Three special cases are considered in which the original yields, the square root of yields, and the logarithm of yields are normally distributed. The insurance plan is applied on a regional basis for wheat and sorghum production in N.S.W. Given distributional information on the crops obtained from a simulation model, expected indemnities are calculated for four different insurance plans.
TL;DR: The argument of the lAC and the Green Papers on protection policy is examined in this article, where a programme of across the board reductions in protection leading to free trade, modified for terms of trade effects, is suggested.
Abstract: The Industries Assistance Commission and the Green Paper on Rural Policy support different protection strategies. Both strategies allow the achievement of a pattern of protection consistent with Pareto-efficiency. The Green Paper on Manufacturing proposed an approach to tariffs that would perpetuate inefficient resource allocation. The argument of the lAC and the Green Papers on protection policy is examined. A programme of across the board reductions in protection leading to free trade, modified for terms of trade effects, is suggested. It is also argued that initial increases in assistance for low cost industries are not inconsistent with such a programme.
TL;DR: A model put forward by the Australian Wool Corporation to simulate the behaviour of the wool market under an inventory scheme is described in this paper, where some deficiencies in the model are pointed out and suggestions are made for alterations to improve the model's performance.
Abstract: A model put forward by the Australian Wool Corporation to simulate the behaviour of the wool market under an inventory scheme is described. Some deficiencies in the model are pointed out and suggestions are made for alterations to improve the model's performance.