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
Language
English
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