Welfare comparisons of u.s. dairy policies with and without mandatory supply control

Harry M. Kaiser, Deborah H. Streeter, Donald J. Liu

Research output: Contribution to journalArticle

13 Scopus citations

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 languageEnglish (US)
Pages (from-to)848-858
Number of pages11
JournalAmerican Journal of Agricultural Economics
Volume70
Issue number4
DOIs
StatePublished - Nov 1988

Keywords

  • Dairy model
  • Dairy policy
  • Food security act
  • Harkin-gephardt family farm Bbill
  • Milk surplus
  • Simulation
  • Supply control
  • Welfare analysis

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