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Dynamic Structure of Production under a Quota: The Case of Milk Production in the Federal Republic of Germany

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  • Stefanou, Spiro E, et al

Abstract

A dynamic multiple output, multiple input model is estimated within the adjustment cost framework to analyze the economic behavior of dairy producers in the Federal Republic of Germany during the first half of the 1980s. The results suggest significant behavior given the introduction of the production quota. The changes in producers' responses were driven by changes in variable input and the evolution from a symmetric to asymmetric adjustment of quasi-fixed factors. In addition, German dairy farmers are found to exhibit considerable excess capacity in production. Coauthors are Jorge Fernandez-Cornejo, Conrado M. Gempesaw II, and Joachim G. Elterich. Copyright 1992 by Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 19 (1992)
Issue (Month): 3 ()
Pages: 283-99

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Handle: RePEc:oup:erevae:v:19:y:1992:i:3:p:283-99

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Cited by:
  1. Casasnovas, Valero L. & Aldanondo, Ana Maria, 2011. "Influence of Animal Feeding on Milk Supply in Navarre," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114316, European Association of Agricultural Economists.
  2. Petrick, Martin & Zier, Patrick, 2012. "Common Agricultural Policy effects on dynamic labour use in agriculture," Food Policy, Elsevier, vol. 37(6), pages 671-678.
  3. Considine, Timothy J. & Heo, Eunnyeong, 2000. "Price and inventory dynamics in petroleum product markets," Energy Economics, Elsevier, vol. 22(5), pages 527-548, October.
  4. Zier, Patrick, 2013. "Econometric impact assessment of the Common Agricultural Policy in East German agriculture," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 71, number 71.
  5. Johannes Sauer, 2010. "Deregulation and dairy production systems: a Bayesian distance function approach," Journal of Productivity Analysis, Springer, vol. 34(3), pages 213-237, December.
  6. Pierani, Pierpaolo & Rizzi, Pier Luigi, 2003. "Technology and efficiency in a panel of Italian dairy farms: an SGM restricted cost function approach," Agricultural Economics, Blackwell, vol. 29(2), pages 195-209, October.
  7. Gardebroek, Cornelis & Oude Lansink, Alfons G.J.M., 2008. "Dynamic Microeconometric Approaches To Analysing Agricultural Policy," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6592, European Association of Agricultural Economists.
  8. Richards, Timothy J. & Patterson, Paul M., 1998. "Dynamic Complementarity In Export Promotion: The Market Access Program In Fruits And Vegetables," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December.
  9. Sckokai, Paolo & Moro, Daniele, 2005. "Modelling the Impact of the CAP Reform on Farm Investments," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24468, European Association of Agricultural Economists.
  10. Sauer, Johannes, 2008. "Quota Deregulation and Organic versus Conventional Milk – A Bayesian Distance Function Approach," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36869, Agricultural Economics Society.
  11. Agbola, Frank W. & Harrison, Stephen R., 2005. "Empirical investigation of investment behaviour in Australia's pastoral region," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), March.
  12. Sckokai, Paolo, 2001. "The Common Agricultural Policy In Econometric Models," Working Papers 14800, National Institute of Agricultural Economics, Italy INEA, Osservatorio Sulle Politiche Agricole dell'UE.
  13. Petrick, Martin & Zier, Patrick, 2010. "Cap Impacts On Labour Use In East German Agriculture," 50st Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93962, German Association of Agricultural Economists (GEWISOLA).
  14. Sesmero, Juan P. & Perrin, Richard K. & Fulginiti, Lilyan E., 2012. "Technology, Markets, and Ethanol Plants Shutdown Price," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124915, Agricultural and Applied Economics Association.

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