RATIONAL EXPECTATIONS IN THE AUSTRALIAN WOOL INDUSTRY

The process by which producers form expectations has implications for model building and policy analysis. An econometric model of the Australian wool market is estimated. It is shown that the rational expectations hypothesis is not inconsistent with the data for both the period before the floor price scheme was implemented and since that date. This finding has important implications, since it has been shown that the welfare gains from stabilisation are small if producers form rational expectations.


Issue Date:
1983-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/22742
Published in:
Australian Journal of Agricultural Economics, Volume 27, Number 3
Page range:
212-220
Total Pages:
9




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

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