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UNDERWRITING AGRICULTURAL COMMODITY PRICES
Author(s) -
Quiggin John C.
Publication year - 1983
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.1467-8489.1983.tb00425.x
Subject(s) - underwriting , commodity , agriculture , business , industrial organization , scheme (mathematics) , economics , finance , mathematics , mathematical analysis , ecology , biology
Underwriting schemes are increasingly being used as a basis for price policy in Australian agricultural industries. These policies simultaneously increase average returns and reduce the risk faced by producers. In this paper, conditions are discussed under which such a combination of policy targets may be desirable. The optimality properties of underwriting schemes in achieving these targets are examined and compared to those of alternative schemes. Aspects of underwriting scheme design are discussed.