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Regulation in a Dynamic Market: The U.S. Dairy Industry
Author(s) -
LaFrance Jeffrey T.,
Gorter Harry
Publication year - 1985
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 - 10.2307/1241822
Subject(s) - dairy industry , economics , ex ante , agricultural economics , economic surplus , econometric model , microeconomics , econometrics , market economy , macroeconomics , welfare , chemistry , food science
An econometric model of the U.S. dairy market is estimated for the period 1950–80. The economic costs of the dairy program for the period 1965–80 are calculated using ex ante, ex post , and long‐run demand and supply functions. Results indicate that the costs of the dairy program averaged from 430 to 590 million 1980dollars per year, depending upon the choice of economic surplus measure. The cost estimates depend only slightly on the year that the dairy program is assumed to have been terminated.