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Supply Growth and Dairy Industry Deregulation

Published online by Cambridge University Press:  10 May 2017

Ching-Cheng Chang  and
Spiro E. Stefanou
Ching-Cheng Chang
Affiliation:
The Pennsylvania State University
Spiro E. Stefanou
Affiliation:
The Pennsylvania State University
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Abstract

Optimal control models of aggregate milk supply and demand behavior are used to describe the optimal phasing of the deregulatory dairy price support in the presence of supply growth. Producers are assumed to face costs of adjustment, and are myopic with respect to price expectations and the adoption of the new quasi-fixed factor augmenting technology.

Type
Research Article
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 16 , Issue 1 , April 1987 , pp. 1 - 9
Copyright
Copyright © 1987 Northeastern Agricultural and Resource Economics Association 

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Footnotes

Senior authorship is not assigned. The helpful comments of Shih-Hsun Hsu and the editor are appreciated. This research was supported by USDA/NRED cooperative research agreement no. 58-3J23-2. Journal Series Article No. 7575 of the Pennsylvania Agricultural Experiment Station.

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