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A Model of the World Wool Market

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  • George Verikios

    (UWA Business School, The University of Western Australia)

Abstract

This paper presents the theoretical and empirical structure of WOOLMOD – a model of the world wool market which treats raw wool and wool products as heterogeneous commodities. The model divides the world wool market into ten geographical regions and production in each region amongst eight major industrial sectors, each representing a different stage of the wool market. The industrial sectors cover the full spectrum of activities from raw wool production to retail garment production. The usefulness of WOOLMOD is demonstrated via an illustrative application: analysing the short-run effects of two to three years worth of total factor productivity growth in the Australian sheep industry – the world’s largest single producer and exporter of raw wool.

Suggested Citation

  • George Verikios, 2004. "A Model of the World Wool Market," Economics Discussion / Working Papers 04-24, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:04-24
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    Cited by:

    1. George Verikios, 2006. "Understanding the World Wool Market: Trade, Productivity and Grower Incomes. Part 1: Introduction," Economics Discussion / Working Papers 06-19, The University of Western Australia, Department of Economics.
    2. George Verikios, 2007. "Understanding The World Wool Market: Trade, Productivity And Growers’ Incomes," Australian Economic Papers, Wiley Blackwell, vol. 46(1), pages 88-107, March.

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    More about this item

    Keywords

    raw wool; wool products; modelling the world wool market; wool processing;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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