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An Economic Analysis Of The U.S. Generic Dairy Advertising Program Using An Industry Model


  • Liu, Donald J.
  • Kaiser, Harry M.
  • Forker, Olan D.
  • Mount, Timothy D.


The market impacts of generic dairy advertising are assessed using an industry model which encompasses supply and demand conditions at the retail, wholesale, and farm levels, and government intervention under the dairy price support program. The estimated model is used to simulate price and quantity values for four advertising scenarios: (1) no advertising, (2) historical fluid advertising, (3) historical manufactured advertising, and (4) historical fluid and manufactured advertising. Compared to previous studies, the dairy-industry model provides additional insights into the way generic dairy advertising influences prices and quantities at the retail, wholesale, and farm levels.

Suggested Citation

  • Liu, Donald J. & Kaiser, Harry M. & Forker, Olan D. & Mount, Timothy D., 1990. "An Economic Analysis Of The U.S. Generic Dairy Advertising Program Using An Industry Model," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 19(1), pages 1-12, April.
  • Handle: RePEc:ags:nejare:28969
    DOI: 10.22004/ag.econ.28969

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    References listed on IDEAS

    1. Jeffrey T. LaFrance & Harry de Gorter, 1985. "Regulation in a Dynamic Market: The U.S. Dairy Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 821-832.
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    Cited by:

    1. Schmit, Todd M. & Dong, Diansheng & Chung, Chanjin & Kaiser, Harry M. & Gould, Brian W., 2002. "Identifying The Effects Of Generic Advertising On The Household Demand For Fluid Milk And Cheese: A Two-Step Panel Data Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(1), pages 1-22, July.
    2. Kaiser, Harry M. & Liu, Donald J., 1996. "The Effectiveness of Generic vs. Branded Advertising: The Case of U.S. Dairy Promotion," Economic Evaluation of Commodity Promotion Programs in the Current Legal and Political Environment, October 7-8, 1996, Monterey, California 279661, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    3. Kaiser, Harry M., 1992. "An Overview of NEMPIS: National Economic Milk Policy Impact Simulator," Staff Papers 121350, Cornell University, Department of Applied Economics and Management.
    4. Ronald B. Larson, 1992. "Marketing agricultural products with coupons," Agribusiness, John Wiley & Sons, Ltd., vol. 8(5), pages 485-492.

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    Livestock Production/Industries; Marketing;


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