TY - JOUR
T1 - A Note of Clarification on the Role of Yield Uncertainty in Influencing Over-Quota Production
AU - Fraser, Robert
PY - 1995
Y1 - 1995
N2 - The literature shows that the influence of yield uncertainty on production relative to quota is ambiguous in the case of a single market. This paper uses a two-market framework (quota market and secondary market) with multiplicative yield uncertainty to show that if over-quota production in the absence of yield uncertainty is profitable, then the presence of yield uncertainty is unambiguously a further stimulus to over-quota production, The analysis is discussed in the context of recent changes to the marketing arrangements for Western Australian potatoes.
AB - The literature shows that the influence of yield uncertainty on production relative to quota is ambiguous in the case of a single market. This paper uses a two-market framework (quota market and secondary market) with multiplicative yield uncertainty to show that if over-quota production in the absence of yield uncertainty is profitable, then the presence of yield uncertainty is unambiguously a further stimulus to over-quota production, The analysis is discussed in the context of recent changes to the marketing arrangements for Western Australian potatoes.
U2 - 10.1111/j.1467-8489.1995.tb00549.x
DO - 10.1111/j.1467-8489.1995.tb00549.x
M3 - Article
VL - 39
SP - 165
EP - 169
JO - Australian Journal of Agricultural Economics
JF - Australian Journal of Agricultural Economics
IS - 2
ER -