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Deregulation of the Norwegian Market for Milk Products

Author

Listed:
  • Brunstad, R.J.
  • Gaasland, I.
  • Vardal, E.

Abstract

In this paper we use a price endogenous mathematical model to estimate the national welfare losses induced by the Norwegian dairy policy. Firstly, we focus on welfare losses at the processing level due to price discrimination between different uses of the milk and cross-subsidization of export. Secondly, we focus on inefficiency at the farm level due to small scale farm units and a distribution of production which does not reflect regional comparative advantages. Thirdly, we demonstrate that employment in rural areas can be upheld at far lower costs if the processing industry is deregulated and the rural farmers are supported through more direct payments.

Suggested Citation

  • Brunstad, R.J. & Gaasland, I. & Vardal, E., 1998. "Deregulation of the Norwegian Market for Milk Products," Norway; Department of Economics, University of Bergen 1298, Department of Economics, University of Bergen.
    • Handle: RePEc:fth:bereco:1298
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    Keywords

    MATHEMATICAL ANALYSIS ; AGRICULTURE ; DEREGULATION;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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