The potential inefficiency of using marketing margins in applied commodity price analysis, forecasting and risk management

Han, F. M. and Holloway, G. J. ORCID: https://orcid.org/0000-0002-2058-4504 (1995) The potential inefficiency of using marketing margins in applied commodity price analysis, forecasting and risk management. In: NCR-134 Conference on Applied Commodity Price Analysis, Forecasting and Market Risk Management, 22-23 Apr 1996, Chicago, USA.

Abstract/Summary

This paper examines the implications of using marketing margins in applied commodity price analysis. The marketing-margin concept has a long and distinguished history, but it has caused considerable controversy. This is particularly the case in the context of analyzing the distribution of research gains in multi-stage production systems. We derive optimal tax schemes for raising revenues to finance research and promotion in a downstream market, derive the rules for efficient allocation of the funds, and compare the rules with an without the marketing-margin assumption. Applying the methodology to quarterly time series on the Australian beef-cattle sector and, with several caveats, we conclude that, during the period 1978:2 - 1988:4, the Australian Meat and Livestock Corporation optimally allocated research resources.

Item Type	Conference or Workshop Item (Paper)
URI	https://reading-clone.eprints-hosting.org/id/eprint/30683
Refereed	Yes
Divisions	Life Sciences > School of Agriculture, Policy and Development > Department of Agri-Food Economics & Marketing
Download/View statistics	View download statistics for this item