TRADE AND WELFARE EFFECTS OF DAIRY PRICE SUPPORT MEASURES

Analysis with a stylised model of milk price determination shows that on a dollar for dollar basis it is theoretically possible for milk price support resulting from discriminatory pricing to be as or even more trade distorting than milk price support resulting from explicit trade intervention in dairy product markets. Numerical results suggest that this result depends mainly on the initial trading status of the country in question. However, other parameters, especially the relative elasticities of demand for fluid versus manufacturing milk also matter.


Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/21951
Total Pages:
21
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-12-06

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