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An Optimal-Control Approach To Stabilising Australian Wool Prices

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  • Hinchy, Mike
  • Simmons, Phil

Abstract

In this paper, some aspects of the application of optimal-control techniques to wool industry price stabilisation are considered. It is not intended to provide a blueprint for the immediate adoption of optimal-control techniques in the management of wool price stablisation. Rather, the contribution is to the developmental and evaluative process involved in considering these techniques. A new econometric model of wool price and supply is also presented, since none of the existing models satisfied the requirements of the study.

Suggested Citation

  • Hinchy, Mike & Simmons, Phil, 1983. "An Optimal-Control Approach To Stabilising Australian Wool Prices," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 27(1), pages 1-29, April.
    • Handle: RePEc:ags:ajaeau:22822
    DOI: 10.22004/ag.econ.22822
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    File URL: https://ageconsearch.umn.edu/record/22822/files/27010044.pdf
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    References listed on IDEAS

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    1. Alan A. Powell & Metodey Polasek & Harry T. Burley, 1963. "Synthetic Fibres In The Wool Textile Industrya Study Of The Role Of Price In Technological Adjustment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 7(2), pages 107-120, December.
    2. Robert G. Chambers & Richard E. Just, 1979. "A Critique of Exchange Rate Treatment in Agricultural Trade Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 249-257.
    3. Holbrook, Robert S & Howrey, E Philip, 1978. "A Comparison of the Chow and Theil Optimization Procedures in the Presence of Parameter Uncertainty," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 749-759, October.
    4. Craine, Roger & Havenner, Arthur, 1977. "A Stochastic Optimal Control Technique for Models with Estimated Coefficients," Econometrica, Econometric Society, vol. 45(4), pages 1013-1021, May.
    5. John C. Quiggin, 1983. "Wool Price Stabilisation And Profit Risk For Wool Users," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 27(1), pages 31-43, April.
    6. Freebairn, John W., 1973. "Some Estimates of Supply and Inventory Response Functions for the Cattle and Sheep Sector of New South Wales," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 41(02-3), pages 1-38, June.
    7. Brian S. Fisher & Carolyn Tanner, 1978. "In Search Of Hunt'S Short‐Run Price Cycles In The Sydney Wool Futures Market," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 129-134, 08-12.
    8. Campbell, Rachel & Gardiner, B. & Haszler, Henry, 1980. "On The Hidden Revenue Effects Of Wool Price Stabilisation In Australia: Initial Results," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 1-15, April.
    9. Prescott, Edward C, 1972. "The Multi-Period Control Problem Under Uncertainty," Econometrica, Econometric Society, vol. 40(6), pages 1043-1058, November.
    10. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    11. Chow, Gregory C, 1973. "Effect of Uncertainty on Optimal Control Policies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 632-645, October.
    12. Norman, Alfred L, 1974. "On the Relationship Between Linear Feedback Control and First Period Certainty Equivalence," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 15(1), pages 209-215, February.
    13. Fisher, Brian S. & Tanner, Carolyn, 1978. "In Search Of Hunt'S Short-Run Price Cycles In The Sydney Wool Futures Market," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 1-6, August.
    14. C. J. McKenzie & B. P. Philpott & M. J. Woods, 1969. "Price Formation in the Raw Wool Market," The Economic Record, The Economic Society of Australia, vol. 45(3), pages 386-398, September.
    15. R. Campbell & B. Gardiner & H. Haszler, 1980. "On The Hidden Revenue Effects Of Wool Price Stabilisation In Australia: Initial Results," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 1-15, April.
    16. Gordon C. Rausser & John W. Freebairn, 1974. "Approximate Adaptive Control Solutions to US Beef Trade Policy," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 3, number 1, pages 177-203, National Bureau of Economic Research, Inc.
    17. repec:bla:ecorec:v:45:y:1969:i:111:p:386-98 is not listed on IDEAS
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    Cited by:

    1. Van Kooten, G. C., 1987. "The Economic Impacts on Consumers of Government Intervention in the Poultry and Egg Sectors: A Comparison of Alternative Welfare Measures," Working Papers 243873, Agriculture and Agri-Food Canada.

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    Keywords

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