Premium
A Regional Analysis of Milk Supply Response in the United States
Author(s) -
Chavas Jean-Paul,
Kraus Alan Francis,
Jesse Edward V.
Publication year - 1990
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/12.2.149
Subject(s) - production (economics) , economics , milk production , agricultural economics , supply management , supply and demand , short run , microeconomics , natural resource economics , zoology , biology , power (physics) , physics , quantum mechanics
A regional model of U.S. milk supply response is specified and estimated. The results suggest that, while being very inelastic in the short run, milk supply tends to be elastic in the longer‐run. Also, the effects of milk price or feed price on milk production are found to vary across regions. This indicates that dairy pricing policy and feed grain policy do affect the regional evolution of U.S. dairy production.