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An Analysis of 1980s Dairy Programs and Some Policy Implications
Author(s) -
Bausell Charles W.,
Smith Scott L.,
Belsley David A.
Publication year - 1992
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 - 10.2307/1242573
Subject(s) - government (linguistics) , econometric analysis , economics , dairy industry , econometric model , business , public economics , policy analysis , macroeconomics , econometrics , public administration , philosophy , linguistics , chemistry , food science , political science
Excessive government purchases of dairy surpluses during the early 1980s prompted three corrective measures: the Milk Diversion Program, Dairy Termination Program, and lower support prices. An eight‐equation econometric model of the dairy sector simulates these programs and shows them to be incomplete or impermanent in their effects. However, further analysis shows that a more aggressive policy of lower support prices would be effective in reducing costs to government and consumers, and lowering transfers to producers.