THE ELASTICITY OF AGGREGATE AUSTRALIAN AGRICULTURAL SUPPLY: ESTIMATES AND POLICY IMPLICATIONS

Annual time series data for the period 1950-51 through 1975-76 are used to estimate the price elasticity of aggregate Australian agricultural supply using two methods. The short-run elasticity is estimated to be highly inelastic but it has been increasing through time. The preferred estimate of the long-run elasticity is in the relatively inelastic range and it has also been increasing through time. Some implications of these results for intersectoral resource flows and compensatory assistance, the cost-price squeeze, the effects of the mineral boom and monetary policy are discussed.


Issue Date:
1982-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/22705
Published in:
Australian Journal of Agricultural Economics, Volume 26, Number 3
Page range:
202-219
Total Pages:
18




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

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