Title

A cross-commodity appraisal of demand-raising research benefits : pork and chicken in Australia

Document Type

Journal article

Source Publication

Journal of Agricultural Economics

Publication Date

5-1-1992

Volume

43

Issue

2

First Page

243

Last Page

247

Publisher

Wiley-Blackwell Publishing Ltd.

Abstract

A multi-commodity model is developed for evaluating the gains from research which raises the demand for a commodity, and applied to the pig and chicken industries in Australia. The major finding is that the gain to pork producers is larger, and the gain to consumers smaller, with a cross-commodity consideration than without. Bigger differences in results are observed with larger values of the cross-price elasticity between pork and chicken, and with a larger shift in demand for chicken. However, the aggregate benefits to the Australian pig industry are not significantly affected by price changes in the market for chicken. The implication of the analysis is that, by ignoring the cross-market feedback between commodities closely related in consumption, consumers (or taxpayers) of the commodity experiencing a rise in demand may bear a higher-than-optimal outlay on public research directed to increasing the demand for that commodity.

DOI

10.1111/j.1477-9552.1992.tb00218.x

Print ISSN

0021857X

E-ISSN

14779552

Publisher Statement

Copyright © 1992 Journal of Agricultural Economics. Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Voon, T. J. P. (1992). A cross-commodity appraisal of demand-raising research benefits: Pork and chicken in Australia. Journal of Agricultural Economics, 43(2), 243-247. doi: 10.1111/j.1477-9552.1992.tb00218.x

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