IDEAS home Printed from https://ideas.repec.org/a/ags/wjagec/32602.html
   My bibliography  Save this article

Modeling The U.S. Dairy Sector With Government Intervention

Author

Listed:
  • Liu, Donald J.
  • Kaiser, Harry M.
  • Mount, Timothy D.
  • Forker, Olan D.

Abstract

An econometric framework for estimating a two-regime dairy structural system is presented. Failure to account for switching between regimes due to government price intervention raises the problem of selectivity bias. Further, since a structural system of equations is involved, the problem is not limited to the market associated with the intervention. Rather, bias from a single source can distort all equations in the system. The ramifications of not correcting for the bias in policy analyses are investigated.

Suggested Citation

  • Liu, Donald J. & Kaiser, Harry M. & Mount, Timothy D. & Forker, Olan D., 1991. "Modeling The U.S. Dairy Sector With Government Intervention," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-14, December.
    • Handle: RePEc:ags:wjagec:32602
    DOI: 10.22004/ag.econ.32602
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/32602/files/16020360.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.32602?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jean-Paul Chavas & Richard M. Klemme, 1986. "Aggregate Milk Supply Response and Investment Behavior on U.S. Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 55-66.
    2. Jeffrey T. LaFrance & Harry de Gorter, 1985. "Regulation in a Dynamic Market: The U.S. Dairy Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 821-832.
    3. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    4. Casler, George L., 1990. "Use of Firm Level Agricultural Data Collected and Managed at the State Level for Studying Farm Size Issues," Staff Papers 121548, Cornell University, Department of Applied Economics and Management.
    5. H. E. Doran & J. J. Quilkey, 1972. "Harmonic Analysis of Seasonal Data: Some Important Properties," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(4_Part_1), pages 646-651.
    6. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    7. Casler, George L., 1990. "Firm Level Agricultural Data Collected and Managed at the State Level," Staff Papers 121532, Cornell University, Department of Applied Economics and Management.
    8. Casler, George L., 1990. "Firm Level Agricultural Data Collected And Managed At The State Level," 1990 Conference, January 6-9, Albuquerque, New Mexico 260177, Regional Research Committe NC-181: Determinants of Farm Size and Structure.
    9. Novakovic, Andrew M., 1990. "Dairy Policy Issues and Options for the 1990 Farm Bill," Staff Papers 121531, Cornell University, Department of Applied Economics and Management.
    10. Liu, Donald J. & Kaiser, Harry M. & Forker, Olan D. & Mount, Timothy D., 1989. "The Economic Implications of the U.S. Generic Advertising Program: An Industry Model Approach," Research Bulletins 183324, Cornell University, Department of Applied Economics and Management.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kaiser, Harry M., 1999. "Impact of Generic Fluid Milk and Cheese Advertising on Dairy Markets, 1984-1998," Research Bulletins 122684, Cornell University, Department of Applied Economics and Management.
    2. Adachi, Kenji & Liu, Donald J., 2006. "Estimating Threshold Effects of Generic Fluid Milk and Cheese Advertising," 2006 Annual meeting, July 23-26, Long Beach, CA 21333, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Kaiser, Harry M., 1997. "Impact of National Generic Dairy Advertising on Dairy Markets, 1984-96," Research Bulletins 122805, Cornell University, Department of Applied Economics and Management.
    4. Kaiser, Harry M., 1995. "An Analysis of Generic Dairy Promotion in the United States," Research Bulletins 122997, Cornell University, Department of Applied Economics and Management.
    5. Kaiser, Harry M., 1997. "Impact Of National Generic Dairy Advertising On Dairy Markets, 1984-95," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(2), pages 1-11, December.
    6. Cornick, Jorge & Cox, Thomas L., 1992. "Endogenous Switching Systems: Issues, Options, and Application to the U.S. Dairy Sector," Staff Papers 200565, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    7. Kaiser, Harry M., 2000. "Impact of Generic Fluid Milk and Cheese Advertising on Dairy Markets," Research Bulletins 122670, Cornell University, Department of Applied Economics and Management.
    8. Kaiser, Harry M. & Forker, Olan D., 1993. "Analysis Of Generi," Research Bulletins 123010, Cornell University, Department of Applied Economics and Management.
    9. Kaiser, Harry M., 1993. "An Analysis of Alternatives to the Dairy Price Support Program," Research Bulletins 123016, Cornell University, Department of Applied Economics and Management.
    10. Bailey, Kenneth W., 2009. "Documentation of a Dynamic and Simultaneous Econometric Model of the U.S. Dairy Industry," Staff Paper Series 48653, Pennsylvania State University, Department of Agricultural Economics and Rural Sociology.
    11. Kaiser, Harry M., 1998. "Impact of National Generic Dairy Advertising on Dairy Markets, 1984-97," Research Bulletins 122690, Cornell University, Department of Applied Economics and Management.
    12. Bailey, Kenneth W., 2000. "Evaluating The Economic Impacts Of Regional Milk Pricing Authorities: The Case Of Dairy Compacts," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(2), pages 1-12, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Donald J. & Kaiser, Harry M. & Forker, Olan D. & Mount, Timothy D., 1990. "An Economic Analysis Of The U.S. Generic Dairy Advertising Program Using An Industry Model," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 19(1), pages 1-12, April.
    2. Ichimura, Hidehiko & Todd, Petra E., 2007. "Implementing Nonparametric and Semiparametric Estimators," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 74, Elsevier.
    3. Verbeek, M.J.C.M. & Nijman, T.E., 1992. "Incomplete panels and selection bias : A survey," Discussion Paper 1992-7, Tilburg University, Center for Economic Research.
    4. Philippe Cyrenne & Robert Fenton & Joseph Warbanski, 2006. "Historic Buildings and Rehabilitation Expenditures: A Panel Data Approach," Journal of Real Estate Research, Taylor & Francis Journals, vol. 28(4), pages 349-380, January.
    5. Marta Ruiz-Arranz & Benjamin Davis & Marco Stampini & Paul Winters & Sudhanshu Handa, 2002. "More Calories or More Diversity? An econometric evaluation of the impact of the PROGRESA and PROCAMPO transfer programmes on food security in rural Mexico," Working Papers 02-09, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    6. Kaiser, Harry M., 1990. "Bovine Somatotropin and Milk Production: Potential Impacts for the U.S," Staff Papers 121538, Cornell University, Department of Applied Economics and Management.
    7. VILHUBERT, Lars, 1999. "Wage Flexibility and Contract Structure in Germany," Cahiers de recherche 9905, Universite de Montreal, Departement de sciences economiques.
    8. Sloczynski, Tymon, 2018. "A General Weighted Average Representation of the Ordinary and Two-Stage Least Squares Estimands," IZA Discussion Papers 11866, Institute of Labor Economics (IZA).
    9. LaFrance, Jeffrey T., 1999. "U.S. Food and Nutrient Demand and the Effects of Agricultural Policies," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt52h9v4dq, Department of Agricultural & Resource Economics, UC Berkeley.
    10. Fors, Gunnar & Svensson, Roger, 2002. "R&D and foreign sales in Swedish multinationals: a simultaneous relationship?," Research Policy, Elsevier, vol. 31(1), pages 95-107, January.
    11. Brownstone, David, 1997. "Multiple Imputation Methodology for Missing Data, Non-Random Response, and Panel Attrition," University of California Transportation Center, Working Papers qt2zd6w6hh, University of California Transportation Center.
    12. John J. Perry, 2009. "The Rise And Impact Of Nurse Practitioners And Physician Assistants On Their Own And Cross‐Occupation Incomes," Contemporary Economic Policy, Western Economic Association International, vol. 27(4), pages 491-511, October.
    13. Mario D. Tello, 2020. "Political Economy Approach of Trade Barriers: The Case of Peruvian’s Trade Liberalization," Documentos de Trabajo / Working Papers 2020-486, Departamento de Economía - Pontificia Universidad Católica del Perú.
    14. Kuester, Sabine & Homburg, Christian & Hildesheim, Andreas, 2017. "The catbird seat of the sales force: How sales force integration leads to new product success," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 462-479.
    15. Ertugrul Uysal & Sascha Alavi & Valéry Bezençon, 2022. "Trojan horse or useful helper? A relationship perspective on artificial intelligence assistants with humanlike features," Journal of the Academy of Marketing Science, Springer, vol. 50(6), pages 1153-1175, November.
    16. Stephan F. Gohmann, 2005. "Preventive Care And Insurance Coverage," Contemporary Economic Policy, Western Economic Association International, vol. 23(4), pages 513-528, October.
    17. Nawata, Kazumitsu & McAleer, Michael, 2014. "The maximum number of parameters for the Hausman test when the estimators are from different sets of equations," Economics Letters, Elsevier, vol. 123(3), pages 291-294.
    18. Miguel Bacharach & William J. Vaughan, 1994. "Household Water Demand Estimation," IDB Publications (Working Papers) 25218, Inter-American Development Bank.
    19. Matteo, PICCHIO, 2006. "Wage Differentials and Temporary Jobs in Italy," Discussion Papers (ECON - Département des Sciences Economiques) 2006033, Université catholique de Louvain, Département des Sciences Economiques.
    20. Xiaodong Teng & Bao-Guang Chang & Kun-Shan Wu, 2021. "The Role of Financial Flexibility on Enterprise Sustainable Development during the COVID-19 Crisis—A Consideration of Tangible Assets," Sustainability, MDPI, vol. 13(3), pages 1-16, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:wjagec:32602. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.