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Aggregate Milk Supply Response and Investment Behavior on U.S. Dairy Farms
Author(s) -
Chavas JeanPaul,
Klemme Richard M.
Publication year - 1986
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241649
Subject(s) - culling , investment (military) , herd , population , economics , aggregate supply , dairy industry , agricultural economics , business , agricultural science , aggregate demand , zoology , monetary economics , environmental science , food science , biology , monetary policy , demography , sociology , politics , political science , law
This paper presents a dynamic model of herd composition and supply response in the U.S. dairy sector. By incorporating biological information, the influences of the economic environment on culling rates and the dynamics of the dairy cow population are analyzed. Short‐run and long‐run supply elasticities provide considerable insights on milk supply adjustments over time.