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STABILISATION AND RISK REDUCTION IN AUSTRALIAN AGRICULTURE *
Author(s) -
Quiggin John C.,
Anderson Jock R.
Publication year - 1979
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1979.tb00243.x
Subject(s) - scheme (mathematics) , reduction (mathematics) , risk analysis (engineering) , agriculture , business , cost reduction , risk management , actuarial science , natural resource economics , economics , finance , marketing , mathematics , geography , mathematical analysis , geometry , archaeology
Agricultural producers typically are faced with risk about the yields they will experience and the prices they will receive. Stabilisation schemes can spread risk and thereby reduce the risk faced by individual producers. The risk‐reducing capacity of a scheme and the cost of risk reduction depend upon the design of the scheme. In particular, it is important to distinguish between risk and instability. A classification of scheme designs is presented to bring out the effects of various design types. Schemes for the wheat industry are given most attention.