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Dairy Policy Modelling Under Imperfect Competition

Author

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  • Soregaroli, Claudio
  • Moro, Daniele
  • Sckokai, Paolo

Abstract

While the estimation of the degree of market power is a widely discussed topic in the economic literature, the interaction between imperfectly competitive markets and agricultural policy modelling has been seldom considered in simulation models. This study empirically addresses this issue with an application to the Italian dairy sector. First, a model of imperfect competition is estimated using a multi-output framework drawn from a direct demand system. Then, results are used in a policy simulation model where the restricted hypothesis of perfect competition is used as a benchmark. Results show a significant degree of market power for some products that has a substantial implication on the projected policy scenario.

Suggested Citation

  • Soregaroli, Claudio & Moro, Daniele & Sckokai, Paolo, 2006. "Dairy Policy Modelling Under Imperfect Competition," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25360, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25360
    DOI: 10.22004/ag.econ.25360
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    References listed on IDEAS

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    1. Lerman, Zvi & Sedik, David & Pugachov, Nikolai & Goncharuk, Aleksandr, 2007. "Rethinking agricultural reform in Ukraine," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 38, number 92325.
    2. Michael Alexeev & Shlomo Weber, 2013. "Russian economy, the," The New Palgrave Dictionary of Economics,, Palgrave Macmillan.
    3. Zvi Lerman & Karen Brooks, 2001. "Turkmenistan : An Assessment of Leasehold-based Farm Restructuring," World Bank Publications - Books, The World Bank Group, number 13947.
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    Cited by:

    1. Rosa, Franco & Vasciaveo, Michaela, 2013. "Imperfect Competition in the Italian Dairy Chain: Consequences for the Price Transmission and Welfare Distribution," 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria 164747, International European Forum on System Dynamics and Innovation in Food Networks.
    2. Rosa, Franco & Weaver, Robert D. & Vasciaveo, Michela, 2015. "Structural Changes and Dairy Chain Efficiency in Italy," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 6(3), pages 1-21, July.

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    Keywords

    Livestock Production/Industries;

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