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