IDEAS home Printed from https://ideas.repec.org/p/ags/saeatm/35103.html
   My bibliography  Save this paper

Endogenizing Government Behavior: Empirical Study Of The U.S. Dairy Price Support Program

Author

Listed:
  • Marchant, Mary A.
  • Song, Baohui

Abstract

The dairy price support program has existed for more than 70 years and the 2002 Farm Bill extends the dairy price support program through the end of 2007. The choice of the support price is a political decision and affects the economics of the U.S. dairy industry. In this research, economic, political, domestic, and international variables that may influence U.S. policymakers' choice of the support price for manufactured dairy products (MDP--butter, cheese and nonfat dry milk) were identified through the development of two models--a behavioral model and a criterion function model. Empirical results of these two models ranked the importance of these variables and compared results.

Suggested Citation

  • Marchant, Mary A. & Song, Baohui, 2003. "Endogenizing Government Behavior: Empirical Study Of The U.S. Dairy Price Support Program," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35103, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saeatm:35103
    DOI: 10.22004/ag.econ.35103
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/35103/files/sp03ma05.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.35103?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
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Rausser, Gordon C & Freebairn, John W, 1974. "Estimation of Policy Preference Functions: An Application to U.S. Beef Import Quotas," The Review of Economics and Statistics, MIT Press, vol. 56(4), pages 437-449, November.
    3. Buxton, Boyd M., 1979. "Milk Marketing Order Regulations," Staff Papers 13582, University of Minnesota, Department of Applied Economics.
    4. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    5. Boyd M. Buxton, 1979. "Post-Regulation Research: Milk Marketing Order Regulations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(4_Part_2), pages 779-786.
    6. Boyd M. Buxton & Jerome W. Hammond, 1974. "Social Cost of Alternative Dairy Price Support Levels," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 286-291.
    7. Philip L. Paarlberg & Philip C. Abbott, 1986. "Oligopolistic Behavior by Public Agencies in International Trade: The World Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 528-542.
    8. Boyd M. Buxton, 1977. "Welfare Implications of Alternative Classified Pricing Policies for Milk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(3), pages 525-529.
    9. Robert T. Masson & Philip M. Eisenstat, 1980. "Welfare Impacts of Milk Orders and the Antitrust Immunities for Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(2), pages 270-278.
    10. Heien, Dale, 1977. "The Cost of the U.S. Dairy Price Support Program: 1949-74," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 1-8, February.
    11. Marchant, Mary A. & Neff, Steven A. & Xiao, Mei, 1997. "Political Economy of United States and European Union Dairy Policy Choice," 1997 Occasional Paper Series No. 7 198045, International Association of Agricultural Economists.
    12. Novakovic, Andrew M. & Thompson, Robert L., 1977. "The Impact Of Imports Of Manufactured Milk Products On The U.S. Dairy Industry," 1977 AAEA-WAEA Joint Meeting, July 31-August 3, San Diego, California 283628, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

    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. Hayley H. Chouinard & David E. Davis & Jeffrey T. LaFrance & Jeffrey M. Perloff, 2010. "Milk Marketing Order Winners and Losers," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(1), pages 59-76.
    2. Marchant, Mary A. & McCalla, Alex F., 1990. "Endogenizing Government Behavior," 1990: The Environment, Government Policies, and International Trade Meeting, December 1990, San Diego, CA 50886, International Agricultural Trade Research Consortium.
    3. Unknown, 1985. "Proceeding of a Seminar Sponsored by Northcentral Regional Project NC-176, Northeastern Regional Project NE-153 Southern Regional Project S-166 "Dairy Modeling in the 1980's: A Symposium on Curre," Economics and Sociology Occasional Papers - ESO Series 243216, Ohio State University, Department of Agricultural, Environmental and Development Economics.
    4. Cox, Thomas L. & Chavas, Jean-Paul & Jesse, Edward V., 1994. "Regional Impacts of Reducing Dairy Price Supports and Removing Milk Marketing Orders in the U.S. Dairy Sector," Staff Papers 200580, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    5. Jeffrey T. LaFrance, 1990. "Incomplete Demand Systems And Semilogarithmic Demand Models," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 34(2), pages 118-131, August.
    6. Rausser, Gordon C. & de Gorter, Harry, 1988. "Endogenizing Policy In Models Of Agricultural Markets," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270460, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Tauer, Loren W. & Kaiser, Harry M., 1990. "Optimal Agricultural Policy with Biotechnology: Bovine Somatotropin and the Dairy Sector," Staff Papers 121536, Cornell University, Department of Applied Economics and Management.
    8. 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.
    9. Suzuki, Nobuhiro & Kaiser, Harry M. & Lenz, John E. & Forker, Olan D., 1993. "Evaluating U.S. Generic Milk Advertising Effectiveness Using An Imperfect Competition Model," Research Bulletins 123015, Cornell University, Department of Applied Economics and Management.
    10. Marchant, Mary A. & Neff, Steven A. & Xiao, Mei, 1997. "Political Economy of United States and European Union Dairy Policy Choice," 1997 Occasional Paper Series No. 7 198045, International Association of Agricultural Economists.
    11. Chang, Ching-Cheng & Stefanou, Spiro E., 1987. "Supply Growth And Dairy Industry Deregulation," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 16(1), pages 1-9, April.
    12. Julian Alston & Colin Carter, 1991. "Causes And Consequences Of Farm Policy," Contemporary Economic Policy, Western Economic Association International, vol. 9(1), pages 107-121, January.
    13. Suzuki, Nobuhiro & Kaiser, Harry M. & Lenz, John E. & Forker, Olan D., 1994. "An Analysis Of U.S. Dairy Policy Deregulation Using An Imperfect Competition Model," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(1), pages 1-10, April.
    14. Martin, Lizbeth & Paarlberg, Philip L. & Lee, John G., 1999. "Bargaining For European Union Farm Policy Reform Through U.S. Pesticide Restrictions," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(2), pages 1-10, October.
    15. Thraen, Cameron S. & Hammond, Jerome W., 1983. "Price Supports, Risk Aversion And U.S. Dairy Policy: An Alternative Perspective Of The Long-Term Impacts," Economic Reports 13034, University of Minnesota, Department of Applied Economics.
    16. Nubern, Chris A. & Purcell, Wayne D., 1997. "Competitiveness of Dairy Producers in a Deregulated Market," Staff Papers 232553, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    17. Jacobson, Elaine Mullaly & Emerson, Robert D., 1989. "The Influences Of Id Ogy And Economic Interests On Dairy Legislation," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270466, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Yamauchi, Hiroshi & Kwon, Yong Dae, 1990. "Agricultural Policy Adjustments In The Korean Rice Economy," 1990 Annual meeting, August 5-8, Vancouver, Canada 271045, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Wenshou Yan & Kaixing Huang, 2018. "Determinants of agricultural protection in China and the rest of the world," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(2), pages 64-75, November.
    20. Dahlgran, Roger A., 1981. "Dairy Marketing And Policy Analysis: A Critical Review Of Recent Empirical Studies," Department of Economics and Business - Archive 259651, North Carolina State University, Department of Economics.

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    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:saeatm:35103. 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/saeaaea.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.