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Development and Measurement of Farm-to-Retail Price Linkage for Evaluating Dairy Advertising Effectiveness


  • Wohlgenant, Michael K.
  • Clary, Cynda R.


A conceptual and empirical framework for estimating the effects of dairy advertising on farm prices and producer returns is developed The model consists of an industry-derived demand equation for milk linking advertising and government purchase. to farm price, and a government purchases equation linking advertising and support prices to government purchases The econometric model is a mixed continuous/ discrete system, estimated by the Amenyia Principle The two-equation system is estimated for both aggregated manufactured advertising and dlsaggregated manufactured advertising The results are consistent with theory and show Significant effects of advertising, particularly for fluid advertising

Suggested Citation

  • Wohlgenant, Michael K. & Clary, Cynda R., 4. "Development and Measurement of Farm-to-Retail Price Linkage for Evaluating Dairy Advertising Effectiveness," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 4.
  • Handle: RePEc:ags:uersja:140089

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