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Deregulation and Subequilibrium in the Australian Dairy Processing Industry
Author(s) -
DOUCOULIAGOS HRISTOS,
HONE PHILLIP
Publication year - 2000
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.1475-4932.2000.tb00013.x
Subject(s) - deregulation , dairy industry , variable cost , capital equipment , production (economics) , economics , capital (architecture) , function (biology) , industrial organization , fixed cost , capital cost , derived demand , business , microeconomics , demand curve , market economy , macroeconomics , chemistry , food science , archaeology , evolutionary biology , biology , history
The Australian dairy processing industry is currently undergoing a program of substantial regulatory reform. In this paper we assess the impact of this deregulation on the production and cost systems of the industry. This is undertaken using a translog restricted cost function, for the period 1969 to 1996, with labour, milk and energy as the variable inputs and capital as the one fixed input. We find that this industry has undergone significant changes in terms of factor demand and cost structures associated with the introduction of new technology.