ECONOMIC EFFECTS OF U.S. DAIRY PROGRAMS
By: Helmberger, Peter G.; Chen, Yu-Hui
Helmberger, Peter G.; Chen, Yu-Hui, ECONOMIC EFFECTS OF U.S. DAIRY PROGRAMS, Journal of Agricultural and Resource Economics, Volume 19, Issue 2, December 1994, Pages 225-238
Based on econometric analysis, this article estimates effects of terminating the milk order system and milk price support, singly and together, over the period 1966-90. Since 1980, milk orders have raised the national blend price by 1-2%; price support has raised the blend price to well above the market clearing price, by over 21% in 1983. Short- and long-run benefits and costs are estimated for various policy options under 1990 conditions.