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SUPPLY RESPONSE IN THE AUSTRALIAN SHEEP INDUSTRY: A PROFIT FUNCTION APPROACH *
Author(s) -
Fisher Brian S.,
Wall Charles A.
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.tb00699.x
Subject(s) - elasticity (physics) , profit (economics) , econometrics , confidence interval , agriculture , economics , supply , price elasticity of supply , quadratic equation , mathematics , agricultural economics , statistics , price elasticity of demand , microeconomics , ecology , biology , physics , geometry , thermodynamics
Profit function models for the three major regions in which the Australian sheep industry operates are specified and estimated. The supply response elasticity estimates are made using a normalised quadratic functional form and time series cross‐sectional data. Elasticity estimates, together with their confidence intervals, are presented for the pastoral, wheat‐sheep and high rainfall zones. In general, the supply response elasticity estimates derived in this study are lower than those previously reported for studies in which little or no account has been taken of the multi‐product nature of Australian agriculture.