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Underwriting Agricultural Commodity Prices

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  • John C. Quiggin

Abstract

Underwriting schemes are increasingly being used as a basis for price policy in Australian agricultural industries. These policies simultaneously increase average returns and reduce the risk faced by producers. In this paper, conditions are discussed under which such a combination of policy targets may be desirable. The optimality properties of underwriting schemes in achieving these targets are examined and compared to those of alternative schemes. Aspects of underwriting scheme design are discussed.
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  • John C. Quiggin, 1983. "Underwriting Agricultural Commodity Prices," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 27(3), pages 200-211, December.
    • Handle: RePEc:bla:ajarec:v:27:y:1983:i:3:p:200-211
    DOI: j.1467-8489.1983.tb00425.x
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    1. Richard E. Just, 1975. "Risk Response Models and Their Use in Agricultural Policy Evaluation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(5), pages 836-843.
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    7. Gallagher, Paul W., 1978. "The Effectiveness of Price Support Policy--Some Evidence for U.S. Corn Acreage Response," Staff General Research Papers Archive 12561, Iowa State University, Department of Economics.
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    Cited by:

    1. Fraser, Rob W., 1988. "A Method For Evaluating Supply Response To Price Underwriting," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 32(1), pages 1-15, April.
    2. Edwards, Geoff W., 1985. "Frontiers in Agricultural Policy Research: Discussion," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 53(02), pages 1-6, August.
    3. Males, Warren P. & O'Mara, L. Paul & Bakalor, J.A., 1991. "The Effects of the Macroeconomy of Underwriting," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145922, Australian Agricultural and Resource Economics Society.
    4. Geoff W. Edwards, 1987. "Agricultural Policy Debate: A Survey," The Economic Record, The Economic Society of Australia, vol. 63(2), pages 129-143, June.
    5. Van Kooten, G. C. & Spriggs, John & Schmitz, Andrew, 1989. "The Impact of Canadian Commodity Stabilization Programs on Risk Reduction and the Supply of Agricultural Commodities," Working Papers 244037, Agriculture and Agri-Food Canada.
    6. John C. Quiggin, 1991. "Contradictory Predictions On Supply Response Under Stabilization: A Reconciliation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 285-294, December.
    7. Anderson, Jock R. & Dillon, John L. & Hardaker, J. Brian, 1985. "Farmers and Risk," 1985 Conference, August 26-September 4, 1985, Malaga, Spain 183026, International Association of Agricultural Economists.

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