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Endogenizing Government Behavior: Empirical Study Of The U.S. Dairy Price Support Program

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Author Info
Marchant, Mary A.
Song, Baohui
Abstract

The dairy price support program has existed for more than 70 years and the 2002 Farm Bill extends the dairy price support program through the end of 2007. The choice of the support price is a political decision and affects the economics of the U.S. dairy industry. In this research, economic, political, domestic, and international variables that may influence U.S. policymakers' choice of the support price for manufactured dairy products (MDP--butter, cheese and nonfat dry milk) were identified through the development of two models--a behavioral model and a criterion function model. Empirical results of these two models ranked the importance of these variables and compared results.

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File URL: http://purl.umn.edu/35103
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Publisher Info
Paper provided by Southern Agricultural Economics Association in its series 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama with number 35103.

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Date of creation: 2003
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Handle: RePEc:ags:saeatm:35103

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Keywords: Agricultural and Food Policy;

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  1. Rausser, Gordon C & Freebairn, John W, 1974. "Estimation of Policy Preference Functions: An Application to U.S. Beef Import Quotas," The Review of Economics and Statistics, MIT Press, vol. 56(4), pages 437-49, November. [Downloadable!] (restricted)
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This page was last updated on 2009-12-11.

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