Modelling Economic Activity in the Australian Sheep Industry
Abstract\"Quantitative economic models are regularly used in analysing the economic issues that affect AustraliaÂ’s agricultural industries. The value of quantitative economic models for industry analyses depends on how accurately they represent an industryÂ’s economic activity. This paper describes the development of such a structural econometric model of the Australian sheep industry. The structural econometric procedures on which this model is based provide a high degree of rigour in modelling the economic relationships in the sheep industry. The modelÂ’s specification, estimation and validation processes are described and its intended uses in evaluating sheep industry research are discussed. \"