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SUBSTITUTION BETWEEN WOOLS OF DIFFERENT FIBRE DIAMETER 1
Author(s) -
Beare Stephen,
Meshios Helen
Publication year - 1990
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.1467-8489.1990.tb00492.x
Subject(s) - substitution (logic) , textile , consumption (sociology) , product (mathematics) , substitution method , materials science , pulp and paper industry , mathematics , composite material , computer science , optics , engineering , physics , art , geometry , programming language , aesthetics
The extent to which wools with different fibre characteristics can be substituted in textile production and consumption holds implications for Australia's international and domestic marketing policies. An analysis of price‐induced substitution between Australian wools of different fibre diameters was conducted. Fibre diameter was used to parameterise cross‐price relationships in order to estimate a system of demand equations for wools by diameter class. The results indicate that direct substitution takes place within a very limited range of fibre diameters. The use of product characteristics to parameterise price relationships may be extended to other graded commodities.