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Generic Fluid Milk Advertising, Demand Expansion, and Supply Response: The Case of New York City

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  • Donald J. Liu
  • Olan D. Forker

Abstract

A transfer function was used to estimate the fluid milk demand equation of New York City. The consumption effect of a generic fluid milk advertising program in the city was found to be positive and statistically significant. The resulting higher blend price of milk was found to have a negligible effect on the subsequent supply of milk. Though being successful in generating positive returns on advertising it was found that a 35% reduction in the advertising expenditures would have been optimal in the marginal sense.

Suggested Citation

  • Donald J. Liu & Olan D. Forker, 1988. "Generic Fluid Milk Advertising, Demand Expansion, and Supply Response: The Case of New York City," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 229-236.
    • Handle: RePEc:oup:ajagec:v:70:y:1988:i:2:p:229-236.
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