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Milk Marketing Order Winners and Losers

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  • Chouinard, Hayley H.
  • Davis, David E.
  • LaFrance, Jeffrey T.
  • Perloff, Jeffrey M.

Abstract

Do milk marketing orders affect various demographic groups differently? To answer this question, we use supermarket scanner data to estimate an incomplete demand system for dairy products. Based on these estimates, we simulate substitution effects among dairy products and the welfare impacts of price changes resulting from changes in milk marketing orders for various consumer groups. While we find little difference in own- and cross-price substitution elasticities of demand, the welfare effects of price changes vary substantially across demographic groups, with some losing and others winning from this government program. Families with young children suffer from marketing orders, while wealthier childless couples benefit. Additionally, we find that households with lower incomes pay a larger percentage of their income due to marketing orders than those with higher income levels.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21238.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21238

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Keywords: Consumer/Household Economics;

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References

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Citations

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Cited by:
  1. Cai, Xiaowei & Stiegert, Kyle W., 2012. "Economic Analysis of the U.S. Fluid Milk Industry," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124939, Agricultural and Applied Economics Association.
  2. Zhen Miao & John C. Beghin & Helen H. Jensen, 2013. "Accounting For Product Substitution In The Analysis Of Food Taxes Targeting Obesity," Health Economics, John Wiley & Sons, Ltd., vol. 22(11), pages 1318-1343, November.
  3. Borneman, Darand L. & Ingham, Steve, 2014. "Evaluating Wisconsin dairy producer compliance and potential eligibility for international markets under existing European Union and United States Grade “A” bulk tank somatic cell count compliance," Food Policy, Elsevier, vol. 46(C), pages 150-156.
  4. Davis, Christopher G. & Dong, Diansheng & Blayney, Donald P. & Yen, Steven T. & Stillman, Richard, 2012. "U.S. Fluid Milk Demand: A Disaggregated Approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 15(1).
  5. Berning, Joshua & Chouinard, Hayley & McCluskey, Jill, 2009. "Measuring the Impact of Nutrition Labels on Food Purchasing Decisions: A field experiment with scanner data," Research Reports 153338, University of Connecticut, Food Marketing Policy Center.
  6. Zhen Miao & John C. Beghin & Helen H. Jensen, 2010. "Taxing Sweets: Sweetener Input Tax or Final Consumption Tax?," Center for Agricultural and Rural Development (CARD) Publications 10-wp510, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  7. Wolf, Christopher A. & Tonsor, Glynn T., 2013. "Dairy Farmer Policy Preferences," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), August.
  8. Davis, Chris & Blayney, Don & Yen, Steven & Cooper, Joseph C., 2009. "An analysis of at-home demand for ice cream in the United States," MPRA Paper 24782, University Library of Munich, Germany.
  9. Davis, Christopher G. & Blayney, Donald P. & Muhammad, Andrew & Yen, Steven T. & Cooper, Joseph C., 2010. "A Cross-Sectional Analysis of U.S. Yogurt Demand," Journal of Food Distribution Research, Food Distribution Research Society, vol. 41(2), July.

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