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Market Impacts Of Bovine Somatropin: A Supply And Demand Analysis

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  • Kaiser, Harry M.

Abstract

The potential economic impacts of the introduction of bovine somatotropin (bST) on U.S. milk supply and demand are analyzed using a national model of Class I and Class II milk markets. The results indicate that the introduction of bST will lead to lower milk prices, higher milk production, and larger government purchases of dairy products. Unlike previous economic analyses of bST, this analysis considers both supply and demand effects of bST. The implication is that studies that ignore potential demand-side effects may produce misleading results.

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  • Kaiser, Harry M., 1992. "Market Impacts Of Bovine Somatropin: A Supply And Demand Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(1), pages 271-282, July.
    • Handle: RePEc:cup:jagaec:v:24:y:1992:i:01:p:271-282_02
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    1. Bruce W. Marion & Robert L. Wills, 1990. "A Prospective Assessment of the Impacts of Bovine Somatotropin: A Case Study of Wisconsin," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 326-336.
    2. McGuirk, Anya M. & Kaiser, Harry M., 1991. "bST & Milk: Benefit or Bane?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 6(01), pages 1-5.
    3. Harry M. Kaiser & Loren W. Tauer, 1989. "Impact of Bovine Somatotropin on U.S. Dairy Markets under Alternative Policy Options," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 11(1), pages 59-73.
    4. 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.
    5. Magrath, William B. & Tauer, Loren W., 1986. "The Economic Impact Of Bgh On The New York State Dairy Sector: Comparative Static Results," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(01), pages 1-8, April.
    6. Loren W. Tauer & Harry M. Kaiser, 1991. "Optimal Dairy Policy with Bovine Somatotropin," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 13(1), pages 1-17.
    7. Milligan, Robert & Lesser, William H. & Magrath, William B. & Bauman, Dale, 1984. "Biotechnology and the Dairy Industry: Production Costs and Commercial Potential of the Bovine Growth Hormone," Research Bulletins 184066, Cornell University, Department of Applied Economics and Management.
    8. William B. Magrath & Loren W. Tauer, 1988. "New York Milk Supply with Bovine Growth Hormone," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 10(2), pages 233-241.
    9. Kaiser, Harry M. & Scherer, Clifford W. & Barbano, David M., 1992. "Consumer Perceptions And Attitudes Towards Bovine Somatotropin," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(01), pages 1-11, April.
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