This article represents an econometric assessment of the role that deficiency payments have played in developing the Japanese fluid and manufacturing milk markets and the potential effects of reducing deficiency payments on these milk markets. Principal findings are: (a) an historical simulation...

This article presents a comparative dynamic analysis of the market impact of alternative U.S. policies designed to reduce excess capacity in milk production. Two policy options are examined based on an econometric model of the dairy industry and a dynamic simulation of the system. The stock...

An econometric framework for estimating a two-regime dairy structural system is presented. Failure to account for switching between regimes due to government price intervention raises the problem of selectivity bias. Further, since a structural system of equations is involved, the problem is not...