A Note of Clarification on the Role of Yield Uncertainty in Influencing Over-Quota Production

Robert Fraser

    Research output: Contribution to journalArticle

    3 Citations (Scopus)

    Abstract

    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.
    Original languageEnglish
    Pages (from-to)165-169
    JournalAustralian Journal of Agricultural Economics
    Volume39
    Issue number2
    DOIs
    Publication statusPublished - 1995

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