Input Demand and Substitution in the Australian Sheep Industry

The demand for production inputs by the average property in the Australian sheep industry and substitution between these inputs was examined in this paper by estimating the set of input share demand equations derived from a transcendental logarithmic cost function. The following five input categories were examined: labour, land, livestock, capital, and materials and services. While the demand for labour was inelastic with respect to its own price, the demand for capital was elastic. All cross price demand elasticities estimated were less than one. In contrast with earlier Australian studies, the elasticity of substitution between labour and capital was found to be greater than unity. Technical change has been relatively labour and land saving and relatively capital, livestock, and materials and services using.


Issue Date:
1980-08
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/9342
Published in:
Review of Marketing and Agricultural Economics, Volume 48, Number 02
Page range:
57-70
Total Pages:
14




 Record created 2017-04-01, last modified 2017-08-23

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)