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Uncertainty and Production Quotas

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  • Fraser, R W

Abstract

The introduction of a quota with a risk-neutral producer will lead to a reduction in planned production. Also, uncertainty influences planned production indirectly in a situation where over-quota production can be sold in an uncertain export market. The direction of this influence depends on the relationship between the producer's uncertainties of price and production. The welfare assessment of the impact of production quotas must incorporate the role of uncertainty. Copyright 1986 by The Economic Society of Australia.

Suggested Citation

  • Fraser, R W, 1986. "Uncertainty and Production Quotas," The Economic Record, The Economic Society of Australia, vol. 62(178), pages 338-342, September.
    • Handle: RePEc:bla:ecorec:v:62:y:1986:i:178:p:338-42
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    Cited by:

    1. Hennessy, David A. & Wei, Wei, 2000. "Decisions and tradable production quota when yield is uncertain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(2), pages 1-15.
    2. Lindner, Robert K., 1990. "Something Fishy in the ITQ Market," 1990 Conference (34th), February 13-15, 1990, Brisbane, Australia 145199, Australian Agricultural and Resource Economics Society.
    3. Fraser, Rob W., 1995. "A Note: A Clarification Of The Role Of Yield Uncertainty In Influencing Over-Quota Production," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(2), pages 1-5, August.

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