Abstract
The existence of costly dairy surpluses has led some policy makers to argue in favor of mandatory supply controls as an alternative to existing dairy policy. A dynamic econometric model is used to simulate the changes in equilibrium prices, quantities, producer and consumer welfare, and government costs that would occur if mandatory controls were adopted. The results show that while such a change in policy would eliminate the costs associated with current price supports, the benefits accruing to producers would be achieved at the expense of consumers and processors.
Original language | English (US) |
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Pages (from-to) | 848-858 |
Number of pages | 11 |
Journal | American Journal of Agricultural Economics |
Volume | 70 |
Issue number | 4 |
DOIs | |
State | Published - Nov 1988 |
Keywords
- Dairy model
- Dairy policy
- Food security act
- Harkin-gephardt family farm Bbill
- Milk surplus
- Simulation
- Supply control
- Welfare analysis