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Measuring Producers' Advantage from Classified Pricing of Milk

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  • Dae Hee Song
  • M. C. Hallberg

Abstract

A method of assessing the degree to which classified pricing of milk has favored milk producers over time is outlined, and results of an application of this method to the 1960–79 period are presented. It is found that prices for the different use classes of milk have, over this period, moved closer to consumer "optimal" prices rather than to producer "optimal" prices. Apparently the regulatory authorities in recent years have recognized less the need for farm income enhancement than the voice of consumer representatives.

Suggested Citation

  • Dae Hee Song & M. C. Hallberg, 1982. "Measuring Producers' Advantage from Classified Pricing of Milk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(1), pages 1-7.
    • Handle: RePEc:oup:ajagec:v:64:y:1982:i:1:p:1-7.
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    File URL: http://hdl.handle.net/10.2307/1241166
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    Cited by:

    1. Kesavan, Thulasiram, 1988. "Monte Carlo experiments of market demand theory," ISU General Staff Papers 198801010800009854, Iowa State University, Department of Economics.
    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. Richard E. Just & Rulon D. Pope, 2012. "Cost Function Estimation with Proportional Errors in Variables," International Econometric Review (IER), Econometric Research Association, vol. 4(2), pages 59-81, September.

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