@article{Fraser:232295,
      recid = {232295},
      author = {Fraser, R.W. and Murrell, A.J.},
      title = {The Australian Wool Corporation's Reserve Price Scheme: An  Assessment of Price Stabilisation and Producer Benefits},
      address = {1990},
      number = {1785-2016-141958},
      series = {Discussion Papers},
      pages = {19},
      year = {1990},
      abstract = {This paper presents a new framework for evaluating the  producer benefits from price stabilisation schemes. The  methodology
includes formulae for explicitly characterising  the floor price feature typical of such schemes. This  methodology is applied to an analysis of the Australian  Wool Corporation's (AWC) Reserve
Price Scheme (RPS) for  wool. Using post intervention data to generate values of ex  ante (unstabilised) and ex post (stabilised) price  variability, results indicate that the coefficient of  variation of wool prices has declined in response to the  operation of the RPS by 41 per cent. A large decrease in  price instability from historical levels to the level  estimated in this paper is also observed. It is suggested  that some of this reduction in price instability may be  attributed to an existence effect of the RPS. As a  consequence, ignoring this existence effect may lead to an  understatement of the benefits from price stabilisation.},
      url = {http://ageconsearch.umn.edu/record/232295},
      doi = {https://doi.org/10.22004/ag.econ.232295},
}