Quotas without supply control: effects of dairy quota policy in California
Unlike the federal milk marketing order system, California's system includes a milk quota program. Oddly, this quota restricts neither production nor marketing. In aggregate, the quota program leads to more milk production than a typical marketing quota, but less milk than blend pricing without...
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Veröffentlicht in: | American journal of agricultural economics 1996-05, Vol.78 (2), p.354-366 |
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Hauptverfasser: | , |
Format: | Artikel |
Sprache: | eng |
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Online-Zugang: | Volltext |
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Zusammenfassung: | Unlike the federal milk marketing order system, California's system includes a milk quota program. Oddly, this quota restricts neither production nor marketing. In aggregate, the quota program leads to more milk production than a typical marketing quota, but less milk than blend pricing without the quota. The California program generates more producer surplus and smaller welfare losses than a federal-style program without quota. When class 1 milk sales expand, production expands less under the quota program than with blend pricing without a quota. Finally, increases in aggregate quota lower production because they lower the marginal price of milk facing producers. |
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ISSN: | 0002-9092 1467-8276 |
DOI: | 10.2307/1243708 |