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Economic performance, cost economies and pricing behaviour in the US and Australian meat products industries

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  • Morrison, Catherine J.

Abstract

The cost and demand structures of meat products industries in the US and Australia from 1970 to 1991 are examined. Scale economies, technical change and trade impacts and output pricing behaviour are evaluated, using short‐ and long‐run input cost and input and output demand elasticities. The greatest technological impacts stem from large‐scale economies, which are similar across countries. Unit cost savings from output expansion involve capital investment and materials saving in the long run, although input‐specific patterns vary by country. Import competition appears to motivate capital expansion further. Finally, large mark‐ups of price over marginal cost are found, which are consistent with low profits as a result of the underlying scale economies.

Suggested Citation

  • Morrison, Catherine J., 1997. "Economic performance, cost economies and pricing behaviour in the US and Australian meat products industries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(3), pages 1-23.
    • Handle: RePEc:ags:aareaj:118053
    DOI: 10.22004/ag.econ.118053
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    References listed on IDEAS

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    7. Barry K. Goodwin & Gary W. Brester, 1995. "Structural Change in Factor Demand Relationships in the U.S. Food and Kindred Products Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 69-79.
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    Cited by:

    1. Berument, M. Hakan & Sahin, Afsin & Sahin, Serkan, 2014. "The relative effects of crude oil price and exchange rate on petroleum product prices: Evidence from a set of Northern Mediterranean countries," Economic Modelling, Elsevier, vol. 42(C), pages 243-249.
    2. Lynn Hunnicutt & DeeVon Bailey & Michelle Crook, 2002. "Measuring Market Power with Variables Other than Price," Working Papers 2002-08, Utah State University, Department of Economics.
    3. Griffith, G.R., 2000. "Competition in the Food Marketing Chain," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 171911, Australian Agricultural and Resource Economics Society.
    4. Hristos Doucouliagos & Phillip Hone, 2000. "Deregulation and Subequilibrium in the Australian Dairy Processing Industry," The Economic Record, The Economic Society of Australia, vol. 76(233), pages 152-162, June.

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    Livestock Production/Industries;

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