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Counting the cost: the reserve price scheme for wool 1970-2001

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  • Abbott, Malcolm
  • Merrett, David

Abstract

This paper provides a policy commentary on the collapse in 1991 of the Australian Reserve Price Scheme for wool. A key cause of the collapse in the Scheme was a change in the RPS’s governance arrangements, which led to increased political pressures to raise prices to unsustainable levels. In addition, in this paper an estimation has been made of the direct, upfront costs of the operation of the scheme, drawing on the financial accounts of the various agencies operating the RPS and subsequent wool stockpile. This was undertaken to determine the scale of the policy failure.

Suggested Citation

  • Abbott, Malcolm & Merrett, David, 2019. "Counting the cost: the reserve price scheme for wool 1970-2001," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), October.
    • Handle: RePEc:ags:aareaj:333859
    DOI: 10.22004/ag.econ.333859
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    References listed on IDEAS

    as
    1. Lewis, Jack Neville, 1979. "Floor Prices and Wool Promotion: Some Further Hidden Costs?," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 47(02), pages 1-9, August.
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    8. repec:bla:ecorec:v:72:y:1996:i:218:p:260-71 is not listed on IDEAS
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    1. Nelson, Rohan & Cameron, Andrew & Xia, Charley & Gooday, Peter, 2022. "The ABARES Approach to Forecasting Agricultural Commodity Markets," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 30(6), November.

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