Efficiency Loss Due to Distortions in Dutch Milk Quota Trade
AbstractThis study analyses the welfare costs of trade distortions in the exchange of milk quota by simulating potential quota trade for 1992/93 subject to various trade restrictions. Efficient quota allocation, in an unrestricted market, comes about when the price of quota is 0.39 guilders per kilogram in 1992/93 prices. A combination of a floor of 10 thousand kilograms on quota supply and a ceiling of 75 thousand kilograms on quota demand results in an efficiency loss of 2.29 per cent of total profit without trade distortions. Incorporating a margin of 2 per cent between the demand and supply price has a minor effect, the total efficiency loss being 0.13 per cent. Another 0.13 per cent accrues to intermediates in quota trade as transfer costs. Copyright 1997 by Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.
Volume (Year): 24 (1997)
Issue (Month): 1 ()
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://www.erae.oupjournals.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Shrestha, Shailesh & Hennessy, Thia C., 2008. "A prospect of moving towards free milk quota market in Ireland – will milk quota movement follow efficiency?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43657, European Association of Agricultural Economists.
- Wieck, Christine & Heckelei, Thomas, 2004. "Development Of Marginal Cost Distributions In Dairy Production Regions Of The Eu," 2004 Annual meeting, August 1-4, Denver, CO 19943, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Chernoff, A. W., 2013. "Between a Cap and a Higher Price: The Dairy Quota Trilemma," Working Papers 165804, Canadian Agricultural Trade Policy Research Network.
- Bogetoft, Peter & Jensen, Peter Max Friis & Nielsen, Kurt & Olesen, Henrik Ballebye & Olsen, Rene H., 2002. "Single Bid Restriction in Milk Quota Exchanges - Comparing the Danish and the Ontario Exchanges," Unit of Economics Working papers 24181, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
- Colman, David, 2000. "Inefficiencies in the UK milk quota system," Food Policy, Elsevier, vol. 25(1), pages 1-16, February.
- Ciaian, Pavel & Kancs, d'Artis & Swinnen, Johan F.M., 2012.
"Income Distributional Effects of Decoupled Payments: Single Payment Scheme in the European Union,"
129428, Factor Markets, Centre for European Policy Studies.
- Ciaian, Pavel & Kancs, d’Artis & Swinnen, Jo, 2012. "Income Distributional Effects of Decoupled Payments: Single Payment Scheme in the European Union," Factor Markets Working Papers 134, Centre for European Policy Studies.
- Bezlepkina, Irina V. & Oude Lansink, Alfons G.J.M. & Oskam, Arie J., 2001. "Farm Firm Micro-Econometric Modelling:Empirical Evidence From Russian Dairy Farming," 2001 Annual meeting, August 5-8, Chicago, IL 20464, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Elskamp, Rebecca & Hailu, Getu, 2013.
"Do Efficient Dairy Producers Purchase Quota?,"
148901, Canadian Agricultural Trade Policy Research Network.
- Elskamp, Rebecca & Hailu, Getu, 2013. "Do Efficient Dairy Producers Purchase Quota?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149678, Agricultural and Applied Economics Association.
- 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.
- 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.
- Fezzi, Carlo & Bateman, Ian J., 2009. "Structural Agricultural Land Use Modelling," 2009 Conference, August 16-22, 2009, Beijing, China 51423, International Association of Agricultural Economists.
- Feinerman, Eli & Peerlings, Jack H.M., 2002. "Uncertain Land Availability and Perceived Biases in Investment Decisions: The Case of Dutch Dairy Farms," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24949, European Association of Agricultural Economists.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.