RURAL ASSISTANCE LEVELS: THE INFLUENCE OF POLICIES AND WORLD PRICE CHANGES

Two aspects of effective rates of assistance for Australian agricultural industries are examined. The long-term rate, rather than the rate for a single year, is determined and a rationale is sought for the pattern of assistance that emerges. Second, the influence of exogenous factors (as represented by changes in world prices) on assistance rates is examined. Assistance elasticities are calculated for the major agricultural commodities and estimates made of the likely change in the pattern of assistance rates from any general world price change. In addition, commodities with assistance rates potentially very different from existing rates are identified. Price transmission elasticities are also derived to indicate the degree of insulation that the various policies provide for each commodity.


Issue Date:
1985-04
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/22508
PURL Identifier:
http://purl.umn.edu/22508
Published in:
Australian Journal of Agricultural Economics, Volume 29, Number 1
Page range:
32-48
Total Pages:
17




 Record created 2017-04-01, last modified 2018-01-22

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