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Price and Quantity Effects of Canada's Dairy Advertising Programs

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  • Kinnucan, Henry W.
  • Belleza, Evelyn T.

Abstract

An equilibrium-displacement model is combined with econometric estimates of key model parameters to identify the impacts of Canada's dairy advertising programs on prices and quantity. Results suggest increased advertising of fluid milk enhances the farm value of milk but has minimal effect on government costs of the dairy price-support program. Owing to government intervention in the butter market, increased butter advertising has no effect on the farm value of milk, at least in the short run, but is highly effective at reducing government costs. Advertising is most effective, ceteris paribus, in markets where retail demand and wholesale supply for the specific dairy product are relatively price inelastic.

Suggested Citation

  • Kinnucan, Henry W. & Belleza, Evelyn T., 1995. "Price and Quantity Effects of Canada's Dairy Advertising Programs," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(2), pages 199-210, October.
    • Handle: RePEc:cup:agrerw:v:24:y:1995:i:02:p:199-210_00
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    Cited by:

    1. Xiao, Hui & Kinnucan, Henry W. & Kaiser, Harry M., 1998. "Advertising, Structural Change, And U.S. Non-Alcoholic Beverage Demand," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20885, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. H. W. Kinnucan, 1996. "A Note On Measuring Returns To Generic Advertising In Interrelated Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 261-267, January.
    3. Şişman, Muhammet Yunus, . "An Economic Welfare Analysis Of Agricultural Subsidies And Inventory Holdings: An Application To The Hazelnut Industry1," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(4).

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