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Linkages between Regulated and Unregulated Markets: the Case of Milk Supply in Kenya
Author(s) -
Howard Wayne H.,
McDonald Ian
Publication year - 1988
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1988.tb00053.x
Subject(s) - economics , proxy (statistics) , agricultural economics , market price , market regulation , supply and demand , monetary economics , business , microeconomics , market economy , machine learning , computer science
Linkages between the regulated and unregulated dairy markets in Kenya were examined using an econometric model of the fluid milk intake for eight processing plants. Counter‐intuitive results were obtained: an increase in the regulated price was significant in decreasing intake in the regulated market, indicating that a price increase in the regulated market also increased price and quantity supplied in the unregulated market. Lagged rainfall was a proxy for available feed and was highly significant in explaining milk intake in the regulated market.