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EFFECTS ON FARM INCOMES AND RURAL LABOUR OF A RELATIVE INCREASE IN WAGESAustralian Journal of Agricultural and Resource Economics, 18
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Annual time series data for the period 1950‐51 through 1975‐76 are used to estimate the price elasticity of aggregate Australian agricultural supply using two methods. The short‐run elasticity is estimated to be highly inelastic but it has been increasing through time. The preferred estimate of the long‐run elasticity is in the relatively inelastic range and it has also been increasing through time. Some implications of these results for intersectoral resource flows and compensatory assistance, the cost‐price squeeze, the effects of the mineral boom and monetary policy are discussed.
The Australian Journal of Agricultural Resource Economics – Wiley
Published: Dec 1, 1982
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