ISBN: 0 7259 0250 7

UNIVERSITY OF NEWCASTLE N.S.W. AUSTRALIA

DEPARTMENT OF ECONOMICS

RESEARCH REPORT OR OCCASIONAL PAPER

Working Paper No. 28

Generalisation of Theorems by OI and Tisdell on the Effect of Price Fluctuations on Average

Profit

by

Clem Tisdell

November 1976

ISBN: 0 7259 0250 7

UNIVERSITY OF NEWCASTLE, N.S.W., AUSTRALIA

DEPARMENT OF ECONOMICS

RESEARCH REPORT OR OCCASIONAL PAPER

Working Paper No. 28

Generalisation of Theorems by Oi and Tisdell on the Effect of Price Fluctuations on Average Profit1

by

Clem Tisdell2

November 1976

© All rights reserved

1 This paper was commenced while I was on study leave at the University of York, England. The study was

supported in part by Wool Industry Research Funds distributed through the Australian Wool Corporation. 2 At the time of writing this paper, Clem Tisdell was Professor of Economics at The University of Newcastle,

NSW, Australia. He is now Professor Emeritus at the School of Economics, The University of Queensland, St. Lucia Campus, Brisbane QLD 4072, Australia. Email: c.tisdell@economics.uq.edu.au

1

Generalisation of Theorems by Oi and Tisdell on the Effect of Price

Fluctuations on Average Profit

ABSTRACT

Oi's theorem that product price-variability raises the average profit of a single product

perfectly competitive firm and Tisdell's proposition that factor price-variability also raises the

average profit of such a firm are generalised in this paper to cover the case of an n-

commodity firm. After reviewing the results of Oi and Tisdell, it is shown that price

instability raises the average profit of a multiple commodity perfectly competitive firm. The

earlier contributions by Oi and Tisdell rely on the partial approach whereas in this paper the

effect of price instability is considered within a general equilibrium framework. The theory

presented in this paper allows for interdependence in production and for the variability of the

prices of a number of factors and products.

Keywords: price instability, Oi’s theorem, multi commodity perfectly competitive firms.

JEL Classification: C62, D50, E37

2

Generalisation of Theorems by Oi and Tisdell on the Effect of Price

Fluctuations on Average Profit

In 1961, Walter Oi [1] showed that the average profit of single- product perfectly competitive

firms is increased by instability of their product's price. This is so if firms' marginal costs are

not subject to shifts, for instance, as a result of random disturbances, if their supply curves are

not perfectly inelastic and if price uncertainty is not a material consideration. [2, 3] In 1970,

Tisdell pointed out [4] that a corresponding theorem, subject to similar qualifications, holds

for the instability of a factor's price, namely, that a perfectly competitive firm's average profit

is greater for a fluctuating price of a factor than for a stable one equal to the average value of

this factor's variable price.

The purpose of this paper is to combine these results and present a theorem that covers the

case of multi-commodity perfectly competitive firms. The paper's contribution lies in its

statement of a general price-instability theorem for an n-commodity perfectly competitive

firm.

Since many firms produce several products the prices of which fluctuate, there is a need to

see whether Oi's proposition generalizes. In Australia, for instance, farmers frequently

produce both wool and beef and other products such as oil seeds, the prices of which are

subject to fluctuation. Furthermore, some firms experience variations in the prices of the

multiple inputs which they use. For example, manufacturers of stock food find that the prices

of grains, lucerne and other inputs, which they use, fluctuate and textile producers experience

variations in natural fibres of different grades. Some firms find that the prices of a number of

their inputs and a number of their products vary and it is, therefore, worthwhile considering

the multi-commodity case. But before doing this, it may be useful to restate the main findings

of Oi and of Tisdell for a single product and for a single input subject to fluctuations in their

prices.

1. Single Commodity Case - Arguments by Oi and by Tisdell Restated

Oi assumes that the price of a perfectly competitive firm's product (a single-product firm)

fluctuates but that the prices of its inputs are stable. Under these conditions, which imply that

3

the firm has perfect knowledge about its prices and costs, the profit which the firm obtains

from fluctuating product prices over an interval of time is greater than the firm can obtain if

the price of the product is stabilised at the average of its fluctuating level.

The argument can be illustrated by means of Figure 1. In Figure 1 the curve marked MC

represents the marginal cost experienced by the competitive firm producing product X and

over an interval of time, the price of this product is assumed to be p1 50 per cent of the time

and p2 in the remainder of the time. When the price of the product is p1 the firm’s profit is

equal to the area of the triangle indicated by B. When the price of the product is p2, the firm's

profit is equal to this area plus the area of the hatched and the dotted quadrilaterals plus the

area of the triangle indicated by G. Profit on average for each period of time is equal to half

of profit when price is p1 plus half of profit when price is p2. In Figure 1, this is equivalent to

the area of triangle B plus the area of the hatched quadrilateral (equals the dotted

quadrilateral) plus half the area of triangle G.

If price is stabilised at E [p] = 0.5 p1 + 0.5 p2, the profit of the firm per period is equivalent to

the area of triangle B plus the area of the hatched quadrilateral. Thus in the stabilised case the

firm's profits per period are lower on average by half the area of triangle G than those when

prices are fluctuating.1

These results are easily generalized for the case in which the perfectly competitive firm's

marginal costs are linear. Let

4

dcdx

= a + bx (1)

represents the firm's marginal costs of production. Since profit maximisation requires that

production be such as to equate the marginal cost with price,

p = a + bx (2)

and, therefore, for the profit-maximising firm

x = p−ab

(3)

Consequently, as indicated from Figure 2, the formula for the area of a triangle (an

appropriate one is hatched in Figure 2) can be used to express the firm's per period profit as a

function solely of p, the price of its product. At price p the area of the triangle representing

the firm's profit is

π = ½(p − a) x = ½(p − a) p−ab

(4)

= 12b

[p2 − 2 ap + a2] (5)

Thus profit per period on average is

E[π] = 12b

(E[p]2 + var p − 2a E [p] + a2) (6)

If the average price of the product is held constant but its variance is increased, the profit of

the firm per period and on average rises because

∂ E [π]∂ var p

= 12b

(7)

Profit per period (averaged) is at a minimum if the price of the product is stabilised at the

average of its fluctuating prices because as (6) indicates, E [π] is a rising linear function of

the variance of p. Thus, as indicated by Oi, price instability increases the firm's profit under

the above conditions.2

5

An analogous argument applies in the case of a perfectly competitive firm using a single

variable input, the price of which is subject to fluctuation. Increased variability of the variable

input's price about the same average value raises the firm's profit over an interval of time, all

other prices constant. This proposition can be illustrated by means of Figure 3.

In Figure 3 the curve of the value of the marginal product of input Q to a perfectly

competitive firm is indicated by the curve marked VMP and itis assumed that the price of

input Q is w1 50 per cent of the time and w2 in the remaining time. When the price of the

input is w2, the per period profit of the firm is equivalent to the area of triangle B. When the

price of the input is w1 the per period profit of the firm is equivalent to the area of triangle B

plus the area of the hatched and the dotted quadrilaterals (which are of equal area) and the

area of triangle G. Hence, if the price of factor is w1 50 per cent of the time and w2 50 per

cent of the time, the firm's profit per period on average is equivalent to the area of triangle B

plus the area of hatched quadrilateral plus half of the area of triangle G.

6

If the price of factor Q is established at E [w], the average of its fluctuating value, the per

period profit of the firm is equivalent to the area of triangle B plus the area of the hatched

quadrilateral. Comparing this area with that described in the last paragraph, the profit of the

firm on average per period is greater when the price of the input fluctuates than when this

price is stable. Average profit in the former case exceeds that in the latter case by half the

area of triangle G.

This result is easily generalized to cover all cases in which the curve of the firm's value

marginal product of its variable input is linear. In the linear case, the firm's profit can be

represented by the area of an appropriate triangle. Such a triangle is indicated by the hatched

area in Figure 4 which indicates the firm's maximum profit when the price of its input is w.

The area of this triangle can be expressed in general terms.

Let a - ßq represents the firm's value of marginal product from employing Q. Since a profit

maximising firm will always employ Q so as to equate Q's price to the value of its marginal

product;

w = α − βq (8)

and

q = α−wβ

(9)

7

Hence, the firm's maximum profit as a function of w, the area of the appropriate triangle is

π = ½(α − w) q = 12β

(α2 − 2α w + w2) (10)

Therefore,3 profit per period on average is

E[π] = 12β

(α2 − 2α E[w] + E[w]2 + var w) (11)

It follows that an increase in the variability of the price of the variable input, Q, raises the

profit of the firm, other things equal, because

∂E[π]∂ var w

= 12β

> o (12)

Fluctuations in the price if a factor increase the profits of a perfectly competitive firm and

such firms suffer a decline in profits if the price of the factor is stabilised at the average of its

fluctuating value.4

It is apparent that both the propositions put forward by Oi and by Tisdell are restricted by

their partial approach and by the fact that the effect of fluctuations only in the price of one

product or in one input are considered. It is theoretically desirable to consider the effect of

price instability on average profit in a general equilibrium framework and to allow for

variability in the prices of a number of commodities (factors and products). This is done in

8

the next section of this paper.

2. Fluctuations in The Prices Of A Number of Commodities

In this section it is shown that the results of Oi and of Tisdell can be generalized to cover the

case when the prices of a number of commodities, interdependent in production are subject to

variation. To do this let X represent the vector of the quantities of commodities (products plus

inputs) involved in a perfectly competitive firm's production and let P represent the vector of

their corresponding prices. Using the Hicksian convention of treating inputs as negative

commodities, the firm's profit in any single period of time is

π = PX (13)

Assume that the prices of all the commodities are stable at values indicated by the vector, P�.

The firm then maximises

π = P�X (14)

subject to its production possibility set. Imagine that this maximum occurs for X�. Then under

stationary conditions, the firm's profit per period (and on average) is

π = P�X� (15)

In particular note that the stationary conditions imply that the production set does not alter

with the passage of time.

Suppose that the prices of one or more commodities become unstable but maintain the same

value on average so that the vector of average commodity-prices remains unchanged at P�. Let

R� represent the vector of relative prices implied by P� when the price of one of the

commodities is taken as a numeraire and let R� represent the vector of relative prices implied

by P� when the same commodity is used as a numeraire. Then if in any period R ≠ R�, the

average profit of the firm must as a rule increase, and cannot decrease.

The average profit of a firm cannot decrease because it always has the option of adopting

production strategy X� in each period and, on average, this ensures the firm of a profit of π�.

However, if in any period R ≠ R� , the firm will as a rule be able to make more profit by

diverging from X� than by maintaining this configuration of production. Consequently, as a

9

rule the firm will benefit from (relative) price instability of factor and/or product prices and

its benefit will be greater as a rule the greater is the range of commodities subject to price

instability.

The condition for the firm to gain from price instability is that there be at least one period in

which X� fails to maximise the firm's profit. If the firm diverges from X� on this occasion this

must increase its profit on this occasion and raise profit on average above π. The greater the

scope for profitable divergence from X�, either prices diverge from P� more frequently or

because more commodities become subject to price instability, the greater is likely to be the

addition of instability to profit on average.

Under Hicksian type of production conditions in which any changes in relative prices alter

the configuration of production, average profit is increased by price instability of inputs

and/or products. However, when X� is situated at a corner-point of the production set (when

substitutability in production is impeded, as may for instance be indicated by inelasticity in

the supply curve) average profit may fail to rise as a result of price instability. But in the

normal case, where some substitution is possible, the average profit of firms can be expected

to rise as a result of price instability provided that relative prices are subject to variation. If

prices rise and fall in the same ratio, average profits are, of course, not affected by price

instability because X� remains optimal, and average prices are unaltered.

It is not surprising that price instability in a world of certainty and a stationary production set

has the results outlined above. Under price instability the firm can always do as well on

average as under price stability. However, by taking full advantage of price variations and

adjusting its production, a firm can usually do better on average under price instability. The

theorem is quite general and the more factors and the more products subject to price

variability the greater on average is the gain of the firm.

10

FOOTNOTES

1. The corresponding industry position to that shown in Figure l for the firm could be as

illustrated in the following figure:

The fluctuations in the price of the product as shown as arising from variations in the

demand for the product.

2. Oi's results apply,·provided the marginal cost curve of the firm eventually increases [3,

pp. 103-105].

3. Note that fixed costs have been ignored throughout. This does not affect the result.

4. This result holds provided that the value of the marginal product of the variable input

eventually declines.[4].

REFERENCES

1. W.Y. Oi. The Desirability of Price Instability Under Perfect Competition,

Econometrica, 29 (1961) pp. 58 – 64.

2. C.A. Tisdell, Uncertainty, Instability and Expected Profit, Econometrica 31 (1963) pp.

243 - 247.

3. C.A. Tisdell, The Theory of Price Uncertainty, Production and Profit, Princeton

University Press, Princeton, New Jersey, 1968.

4. C. A. Tisdell, Price Instability and Average Profit, Oxford Economic Papers 22 (1970)

pp. 1 - 12.

11

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1. JOHNS, B.L., "Import Substitution and Expert Potential - The Case of Manufacturing Industry in West Malaysia", October 1973, ISBN 0 7259 0063 6.

- Also published in Australian Economic Papers, 12(21), December 1973, pp. 175-195. 2. JACOBI, S.N., "Economic Policy Alternatives for Relieving Urban Traffic Congestion",

October 1973, ISBN 0065 2. - Also published in Webb, G.R. & J.C. McMaster, (eds.) Australian Transport Economics,

(ANZ Book Co, Sydney, 1975) pp. 122-139. 3. IP, P.C., "An English Versus a Scottish Pound and a Fixed Versus a Flexible Exchange Rate",

October 1973, ISBN 0 7259 0067 9. 4. IP, P.C., "Macroeconomic Policy for an Open and Unemployed Economy", October 1973,

ISBN 0 7259 0068 7. 5. AISLABIE, C.J., "The Economic Significance of the Evidence on the Size and Growth of

Firms", November 1973, ISBN 0 7259 0073 3. 6. KEATING, G.R., "An Empirical Investigation of Some Implications of Gibrat's Law",

November 1973, ISBN: 0 7259 0077 6. - A slightly different and shorter version was published in Australian Economic Papers,

13(23), December 1973, pp. 2&1-286. 7. DE CASTRO LOPO, J.C., "On the Logic of the Size Distribution of Population Centres with

Special Reference to Australian Evidence", December 1973, ISBN 0 7259 0080 6. 8. TISDELL, C.A., "The Theory of Optimal City-Sizes: Elementary Speculations about Analysis

and Policy", April 1974, ISBN 0 7259 0098 9. - Also published in Urban Studies, 12, 1975, pp. 61-70.

9. IP, P.C., "Inflation, Unemployment and Economic Growth", June 1974, ISBN 0 7259 0074 1. 10. DUNLOP, W.C., "Banana Marketing", July 1974.

Part I Marketing Behaviour - Banana Growers New South Wales. A Short-Run Inter-Market Response Model. ISBN 0 7259 0112 8.

Part II The National Banana Marketing Scheme. ISBN 0 7259 0113 6. 11. IP, P.C., "Exchange Rate, Fiscal and Monetary Policy for Stabilisation of National Income",

October 1974, ISBN 0 7259 0119 5. 12. DOELEMAN, J.A., "A Model of Confrontation", October 1974, ISBN 0 7259 0120 9. 13. STAHL, C.W., "On the Constancy of the Modern Sector Wage in a Developing Dual

Economy", October 1974, ISBN 0 7259 0126 8. 14. GORDON, B.L.J. & JILEK, T.S., "Industrial Disputes and Structural Change: The Case of

New South Wales Black Coal, 1900 to 1960", November 1974, ISBN 0 7259 0130 6. 15. DYER, JAMES, IV, "Efficient Markets and Random Walks in Australian Stock Market

Prices", November 1974, ISBN 0 7259 0131 4. 16. DOUGLAS, E.J., "A Pedagogical Reformulation of the Edgeworth Duopoly Model with

Identical and Differentiated Products", November 1974, ISBN 0 7259 0132 2. 17. IP, P.C., "The Open-Economy Phillips Curves and the Welfare Gains from Trade", November

1974, ISBN 0 7259 0136 5. 18. AISLABIE, C.J., "Market Signals, Size of Firms and Incentive to Invent", December 1974,

ISBN 0 7259 0146 2. 19. TISDELL, C.A., KEATING, G.R. & McDONALD, P., "Man-Made Fibres and Fluctuations in

the Prices of Natural Fibres", March 1975, ISBN 0 7259 0165 9. 20. DYER, JAMES, IV, "A Descriptive Analysis of the Distribution of Returns from Australian

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in Australian Journal of Management, 2(1), April 1977, pp. 1-10.

12

22. TISDELL, C.A., "Promotion and Advertising by Monopolies and Cartels - A Neglected Welfare Aspect", November 1975, ISBN 0 7259 0212 4. - Also published as "Is Advertising Expenditure Socially Excessive?", in Bulletin of

Economic Research, 29, 1977, pp. 57-69. 23. TISDELL, C.A. & McDONALD, P.W., "Variability of Wool and Cotton Prices Empirically

Related to Capacity Utilisation in the Man-Made Fibre Industry", April 1976, ISBN 0 7259 0227 2. - Incorporated in Economics of Fibre Markets: Interdependence Between Man-Made Fibres,

Wool and Cotton, Pergamon Press, Oxford, 1979. 24. IP, P.C., "Fiscal Policy and the Natural Rate of Unemployment", May 1976, ISBN 0 7259 0230

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Insurance", August 1976, ISBN 0 7259 0239 6. 26. TISDELL, C.A. & McDONALD, P.W., "Price Instability of Wool Related to Market Share and

Capacity Utilisation of Man-Made Fibres - Multiple Regression Analysis", September 1976, ISBN 0 7259 0242 6. - Incorporated in Economics of Fibre Markets: Interdependence Between Man-Made Fibres,

Wool and Cotton, Pergamon Press, Oxford, 1979 . 27. YOUNGSON, A.J., "Adam Smith and the Omnipresent State", November 1976, ISBN 0 7259

0247 7, (Adam Smith Bi-Centenary Lecture, the First Newcastle Lecture in Political Economy). 28. TISDELL, C.A., "Generalisation of Theorems by Oi and Tisdell on the Effects of Price

Fluctuations on Average Profit", November 1976, ISBN 0 7259 0250 7. - Also published as "Extension of Oi's Price Instability Theorem", in Journal of Economic

Theory, 17(1), February 1978, pp. 130-133. 29. AISLABIE, C.J., "Notified Infectious Hepatitis in the Hunter Health Region", November 1976,

ISBN 0 7259 0253 1. 30. TISDELL, C.A., "Does Price Instability Increase Consumer's Welfare as Waugh and Massell

Suggest?", November 1976, ISBN 0 7259 0954 X. 31. IP, P.C., "Financing Tertiary Education", January 1977, ISBN 0 7259 0259 0. 32. IP, P.C., "Stabilisation Policies and Welfare", January 1977, ISBN 0 7259 0260 4. 33. TISDELL, C.A., "Simple Economic Models of Pest Control - Models with Possible

Application to the Control of Feral Pigs and Other Wild Animals", May 1977, ISBN 0 7259 0265 5. - Incorporated in Wild Pigs: Environmental Pest or Economic Resource? (Pergamon Press,

Sydney, 1982). 34. STANTON, P.J. & GILLING, D.M., "Structure, Conduct and Performance of the Auditing

Profession", September 1977, ISBN 0 7259 0280 9. 35. TISDELL, C.A., "Dissent from Value, Preference and Choice Theory in Economics",

September 1977, ISBN 0 7259 0282 5. - Also published in International Journal of Social Economics, 10(2), 1983, pp. 32-43.

36. HARCOURT, G.C. “Eric Russell, 1921-77: A Great Australian Political Economist” October 1977, ISBN: 0 7259 0286 8 (The Second Newcastle Lecture in Political Economy) - Also published in Kerr, P (ed.) The Social Science Imperialists and Other Essays: Selected

Essays of G.C. Harcourt. (Routledge and Kegan Paul, London, 1982). 37. GORDON, B.L.J., "The Catholic Social Theory of Trade Unionism: An Exposition", October

1977, ISBN 0 7259 0290 6. 38. TISDELL, C.A., "Imperialism and Traditional Economic Views of Development", October

1977, ISBN 0 7259 0288 4. 39. OAKLEY, A.C., "A Bibliographical Analysis of Karl Marx's Writings in Political Economy",

October 1977, ISBN 0 7259 0291 4. - An expanded and revised version appears as The Making of Marx's Critical Theory: A

Bibliographical Analysis, (Routledge and Kegan Paul, London, 1983). 40. GORDON, B.L.J., "Economic Enquiry and Western Thought, 700 B.C. -A.D. 1600: A.

Bibliography of Research in the History of Ideas", December 1977, ISBN 0 7259 0292 2.

13

41. TISDELL, C.A., "Observations on the Wild Pig Problem in N.S.W. - A Survey and Interpretation of Economic Aspects based on Reports from Pasture Protection Boards", March 1978, ISBN 0 7259 0 304 X. - Incorporated in Wild Pigs: Environmental Pest or Economic Resource? (Pergamon Press,

Sydney, 1982). 42. GORDON, B.L.J., "Modern Studies in Ricardian Economic Theory and Policy", April 1978,

ISBN 0 7259 0302 3. 43. TISDELL, C.A., "Wildlife: A National Asset or Pest to be Managed", July 1978, ISBN 0 7259

0307 4. - Also published in Department of Science and the Environment, Environmental Economics,

(A.G.P.S., Canberra, 1979) pp.79-87. 44. TISDELL, C.A., "A Further Review of Pollution Control", June 1978, ISBN 0 7259 0314 7.

- Also published as "Pollution Control: Policies Proposed by Economists", in Journal of Environmental Systems, 12(4), 1983, pp. 363-380.

45. FISHER, J.R. & SMITH, A., "International Competition in the Australian Wire Market 1880-1914", August 1978, ISBN 0 7259 0316 3. - Also published in Business History, XXII (1), January 1980, pp. 71-86.

46. TUCKER, G.S.L., "The Political Economy of William Huskisson", October 1978, ISBN 0 7259 0322 8. (The Third Newcastle Lecture in Political Economy).

47. TISDELL, C.A., "Economics of Wilderness", December 1978, ISBN 0 7259 0325 2 - Also published in Robertson, R.W., P. Helman, & A. Davey, (eds.) Wilderness Management

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48. TISDELL, C.A., "On the Economics of Saving Wildlife from Extinction", February 1979, ISBN 0 7259 0329 5.

49. SHARPE, I.G. & VOLKER, P.A., "The Australian Reserve Base/Money Relationship", May 1979, ISBN 0 7259 0345 7. - Also published as "The Australian Monetary Base/Money Supply Relationship 1964-1977",

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51. STANTON, P.J., "International Market Structure and Trade: A Case Study of the International Tyre Industry", September 1979, ISBN 0 7259 0356 2.

52. MATHEWS, R.L., "The Distribution of Tax Sharing Entitlements Among the States", October 1979, ISBN 0 7259 0362 7, (The Fourth Newcastle Lecture in Political Economy).

53. OAKLEY, A.C., "The Value-Price-Distribution Articulation Problem in Karl Marx's Critique of David Ricardo's Principles", May 1980, ISBN 0 7259 0378 3. - A revised version appears as Chapter 4 in Marx's Critique of Political Economy: Intellectual

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57. TISDELL, C.A., "Law, Economics and Risk-Taking", October 1980, ISBN 0 7259 0393 7. - Also published in Kyklos, Vol 36 No l, 1983, pp. 3-20.

58. FISHER, J R., "Tenurial Deficiencies in the English Land System: The Mid-Nineteenth Century Debate", November 1980, ISBN 0 7259 0397 X. - An amended and abbreviated version appears in Agricultural History Review 31, Part 1,

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59. COATS, A.W., "Reflections on the Professionalization of Economics", November 1980, ISBN 0 7259 0399 6.

60. UHR, C G., "Notes on the Influence of Wicksell's Theories on American and British Economic Thought", July 1981, ISBN 0 7259 0411 9.

61. STAHL, C.W., "International Labour Migration and International Development", August 1981, ISBN 0 7259 0411 9.

62. KEATING, G.R. & SHARPE, I.G., "Australian Interest Rates: A Cross Correlation of Analysis" September 1981, ISBN 0 7259 0413 5. - Also published in Jüttner, D.J. (ed.) Interest Rates, (Longman Cheshire, Melbourne, 1981)

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64. GORDON, B.L.J., "Studies -in the Economics of W.S. Jevons: A Centenary Checklist", December 1981, ISBN 0 7259 0419 4.

65. TISDELL, C.A., "Resource Allocation and Control Over Man's Environment: Three Economic Essays", March 1982, ISBN 0 7259 0424 0. - Essay I also published in Environmental Systems, 12(2), 1982-83, pp. 153-161; Essay II in

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66. TISDELL, C.A., "Oligopoly and the Impact of Variable Demand Conditions on Profit and the Flexibility of Techniques", April 1982, ISBN 0 7259 0425 7.

67. TISDELL, C.A., "Production and the Natural Environment: Two Economic Essays", April 1982, ISBN 0 7259 0427 5. - Essay II also published in Journal of Agricultural Economics, 34(2), 1983, pp. 175-185.

68. PULLEN, J.M., "The Balanced Budget Multiplier Theorem: Some Comments on its History, and a Critique", June 1982, ISBN 0 7259 0431 3.

69. SHARPE, LG., "New Information and Australian Equity Returns: A Multivariate Analysis", June 1982, ISBN 0 7259 0432 1. - Also published in Australian Journal of Management, 8(1), June 1983.

70. DOELEMAN, J .A., "Concerning the Conflicting Nature of the Contribution of the Discipline of Economics to the Teaching of Environmental Studies", July 1982, ISBN 0 7259 0436 4. - Also published in Journal of Environmental Education, forthcoming, 1983.

71. UHR, C.G., "The Economic Writings of Sir William Petty, 1623-1687, Revisited", July 1982, ISBN 0 7259 0435 6.

72. SHARPE, I.G., "On the Predictability of the Spot U.S.$/A$ Exchange Rate:1978-1981", July 1982, ISBN 0 7259 0437 2.

73. TISDELL, C.A., "The World Conservation Strategy: Its Economic Basis and Australian Proposals", August 1982, ISBN 0 7259 D440 2. - Also published as "An Economist's Critique of the World Conservation Strategy, with

examples from the Australian Experience", in Environmenta1 Conservation, 10(1), 1983: pp. 43-52.

74. JACOBI, S.N., "The Economics of Crime: A Survey of Issues", August 1982. ISBN 0 7259 0441 0.

75. SHARPE, LG. & HOGAN, W.P. “Regulation, Investor/Depositor Protection and the Campbell Report” June 1982, ISBN 0 7259 0444 5. - Also published as "On Prudential Controls", in Economic Papers Special Edition on The

Campbell Report, April 1983, pp. 144-161 & "Some Issues in Prudential Regulation and Examination", in Jüttner, D.J. & T.J. Valentine (eds.), The Economics and Management of Financial Institutions, (Longman Cheshire, Melbourne 1983)

76. TISDELL, C.A., "Three Microeconomic Essays", September 1982, ISBN 0 7259 0445 3. - Essay I also published in The Manchester School of Economic and Social Studies, 51(2),

1983, pp. 152-158; & Essay II in Oxford Agrarian Studies, forthcoming

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77. TISDELL, C.A. & FAIRBAIRN, I .J., "Subsistence Economies and Unsustainable Development and Trade: Some Simple Theory", September 1982, ISBN 0 7259 0446 1. - Also published in The Journal of Development Studies 20(2), January, 1984.

78. SHARPE, I.G., "The Treasury Note Tender and Volatility of Australian Short-Term Interest Rates", October 1982, ISBN 0 7259 0447 X.

79. TISDELL, C.A. & DE SILVA, N.T.M.H., "Economic Spacing of Trees and Other Crops", November 1982, ISBN 0 7259 0448 8. - Also published in European Review of Agricultural Economics, 1983, 10(3), pp. 281-293.

80. SHARPE, I.G., "Covered Interest Rate Parity: The Australian Case", March 1983, ISBN 0 7259 0452 6. - Also published in Applied Economics, forthcoming 1984.

81. FISHER, J.R. & SMITH, A., "Tariffs and the Victorian Wire Industry in the Federation Era", April 1983, ISBN 0 7259 0453 4.

82. TISDELL, C.A. & FAIRBAIRN, I.J., "Development Problems and Planning in a Resource-Poor Pacific Country: The Case of Tuvalu", April 1983 ISBN 0 7259 0454 2. - Also published in Public Administration and Development, forthcoming.

83. SHARPE, I.G. & HOGAN, W.P., “On the Relationship Between the New York Closing Spot US $/$A Exchange Rate and the Reserve Bank of Australia’s Official Rate”. June 1983. ISBN: 0 7259 0456 9 - Also published in Economic Letters, forthcoming 1983.

84. FORSTER, B.A., “Acid Rain in North America: An International Externality”, July 1983. ISBN: 0 7259 0458 5.

85. TISDELL, C.A. AND FAIRBAIRN, I.J., “Labour Supply Constraints on Industrialization and Production Deficiencies in Traditional Sharing Societies”, August 1983, ISBN: 0 7259 0461 5

86. GORDON, B.L.J., JARVIE, W. & GORDON, M. “Sub-Regional Labour Markets in Newcastle and the Hunter: Part One, the 1971 Census”. September 1983, ISBN: 0 7259 0466 6.

87. DICK, H.W., “PLUS CA CHANGE … The Evolution of Australian Liner Shipping Policy”, October 1983, ISBN: 0 7259 0467 4.

88. GRUEN, F.H., “The Prices and Incomes Accord, Employment and Unemployment”, September, 1983, ISBN: 0 7259 0469 0 (The Seventh Newcastle Lecture in Political Economy).

89. KIBRIA, M.G. & TISDELL, C.A., “Productivity Progress and Learning by Doing in Bangladesh Jute Weaving Industry'', October 1983. ISBN 0 7259 0470 4.

90. McSHANE, R.W. & SHARPE, I.G., "A Time Series/Cross Section Analysis of the Determinants of Australian Trading Bank Loan/Deposit Interest Margins:1962- 1981", October 1983, ISBN 0 7259 0471 2.

91. TISDELL, C.A., "Cost-Benefit Analysis, The Environment and Informational Constraints in LDCs", November 1983, ISBN 0 7259 0472 0.

92. KIBRIA, M.G. & TISDELL, C.A., "Inflexibility of Industrial Employment in a Third World Country: The Case of Jute Weaving in Bangladesh”, November 1983, ISBN 0 7259 0473 9.

93. GORDON, B. & JOSEPH, E., "Studies in the Thought of Joseph A. Schumpeter, Economist: A Centenary Checklist", November 1983, ISBN 0 7259 0474 7.

94. PULLEN, J.M., "Malthus, Jesus, and Darwin", January 1984, ISBN 0 7259 0476 3. 95. TWOHILL, B.A., AISLABIE, C.J. & SHEEHAN, W.J., “The Concentration Phenomenon and

Stability Problems in a Micro-Economy: The Norfolk Island Public Sector Experience, 1976-77 to 1982-83” March 1984, ISBN 0 7259 0483 6.

96. FISHER, J.R., “Australia and the First Economic Revolution”, April, 1984, ISBN 0 7259 0484 4.

97. TISDELL, C.A., "Two Essays in Managerial Economics”, May, 1984, ISBN 0 7259 0485 2. 98. TISDELL, C.A., “Three Essays in Agricultural Economics", May, 1984, ISBN 0 7259 0486 0. 99. KEATING, G., "State Lottery Subscriptions - An Analysis Using Spline Regression”, May

1984, ISBN 0 7259 0488 7. 100. STANTON, P.J., “Protection and Structural Adjustment in the Australian Tyre Industry, 1960

to 1980”, June 1984, ISBN: 0 7259 0489 5. 101. TISDELL, C.A., “Externalities and Coasian Considerations in Project Evaluation: Aspects of

Social CBA in LDCs”, June 1984.

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102. DOELEMAN, J.A., “Historical Perspective and Environmental Cost-Benefit Analysis”, July 1984, ISBN: 0 7259 0492 5.

103. POWELL, A.A., “Real Wages and Employment”, July 1984, ISBN: 0 7259 0494 1. (The Eighth Newcastle Lecture in Political Economy)

104. TISDELL, C.A., “Costs and Benefits of Tree Conservation, Maintenance, Regeneration and Planting: Evaluation of Case Studies”, August 1984, ISBN: 0 7259 0495X