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Who Pays for Home Consumption Pricing Schemes? *
Author(s) -
PARMENTER B. R.,
SAMS D.,
VINCENT D. P.
Publication year - 1981
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1981.tb01048.x
Subject(s) - economics , commodity , consumption (sociology) , wage , indexation , agriculture , microeconomics , labour economics , macroeconomics , market economy , monetary policy , ecology , social science , sociology , biology
In the 1930s Giblin conjectured that in an important sense the costs of home consumption pricing schemes for agricultural export Commodities are borne by other lightly‐sheltered industries in the trading sector. including other agricultural industries. The effect of the increase in the domestic price of the supported commodity on the domestic‐cost structure. especially via wage indexation. is the mechanism by which this cost is imposed. This paper uses the ORANI model of the Australian economy to provide an empirical analysis of Giblin's conjecture for the case of a hypothetical home‐price scheme for wheat