PRICE AND QUANTITY EFFECTS OF CANADA'S DAIRY ADVERSTISING PROGRAMS

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.


Subject(s):
Issue Date:
1995-10
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31583
Published in:
Agricultural and Resource Economics Review, Volume 24, Number 2
Page range:
199-210
Total Pages:
12




 Record created 2017-04-01, last modified 2017-08-24

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