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Deregulation of the Norwegian Market for Milk Products

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Author Info

  • Brunstad, R.J.
  • Gaasland, I.
  • Vardal, E.

Abstract

In this paper we use a price endogenous mathematical model to estimate the national welfare losses induced by the Norwegian dairy policy. Firstly, we focus on welfare losses at the processing level due to price discrimination between different uses of the milk and cross-subsidization of export. Secondly, we focus on inefficiency at the farm level due to small scale farm units and a distribution of production which does not reflect regional comparative advantages. Thirdly, we demonstrate that employment in rural areas can be upheld at far lower costs if the processing industry is deregulated and the rural farmers are supported through more direct payments.

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Bibliographic Info

Paper provided by Department of Economics, University of Bergen in its series Norway; Department of Economics, University of Bergen with number 1298.

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Length: 17 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:bereco:1298

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Postal: Department of Economics, University of Bergen Fosswinckels Gate 6. N-5007 Bergen, Norway
Phone: (+47)55589200
Fax: (+47)55589210
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Web page: http://www.uib.no/econ/
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Keywords: MATHEMATICAL ANALYSIS ; AGRICULTURE ; DEREGULATION;

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