Effects of government programs to raise milk prices: academic economists and public policy

The Northeast Dairy Compact benefited milk suppliers (and allied input suppliers) and harmed those on the fluid milk demand side in the Compact region, while having opposite impacts on these groups outside the Compact region. These simulation results leave many questions unanswered, but seem relatively robust. Simulations require many assumptions, but so do all other approaches to policy analysis. The specific policy question addressed and available data determine the most promising approach. In some cases, as with the evaluating effects of the Compact, a variety of approaches to policy analysis are complementary. [EconLit citations: Q18, Q13, L10, L43]. © 2005 Wiley Periodicals, Inc. Agribusiness 21: 473–476, 2005.