Milk Marketing Order Winners and Losers

Posted: 22 Feb 2010

See all articles by Hayley H. Chouinard

Hayley H. Chouinard

Washington State University - School of Economic Sciences

David E. Davis

South Dakota State University - Department of Economics

Jeffrey T. LaFrance

University of California, Berkeley

Jeffrey M. Perloff

University of California, Berkeley - Department of Agricultural & Resource Economics

Date Written: Spring 2010

Abstract

Determining the impacts on consumers of governmental policies that affect the demand for food products requires a theoretically consistent micro-level demand model. We estimate a system of demands for weekly city-level dairy product purchases by nonlinear three-stage least squares to account for joint determination between quantities and prices. We analyze the distributional effects of federal milk marketing orders, and find results that vary substantially across demographic groups. Families with young children suffer, while wealthier, childless couples benefit. We also find that households with lower incomes bear a greater regulatory burden due to marketing orders than those with higher income levels.

Keywords: consumer welfare, dairy product demand, distribution, federal milk marketing orders, D12, E21, H22, Q18

Suggested Citation

Chouinard, Hayley H. and Davis, David E. and LaFrance, Jeffrey T. and Perloff, Jeffrey M., Milk Marketing Order Winners and Losers (Spring 2010). Applied Economic Perspectives and Policy, Vol. 32, No. 1, pp. 59-76, 2010, Available at SSRN: https://ssrn.com/abstract=1556171 or http://dx.doi.org/ppp002

Hayley H. Chouinard (Contact Author)

Washington State University - School of Economic Sciences ( email )

P.O. Box 646210
Pullman, WA 99164
United States
(509) 335-8739 (Phone)
(509) 335-1173 (Fax)

HOME PAGE: http://www.ses.wsu.edu/PDFFiles/FacultyVita/hayleycv_1_2007_SES.pdf

David E. Davis

South Dakota State University - Department of Economics ( email )

Brookings, SD 57007-0895
United States

HOME PAGE: http://sdstate.edu/econ/faculty/david-davis/index.cfm

Jeffrey T. LaFrance

University of California, Berkeley ( email )

207 Giannini Hall / MC 3310
Berkeley, CA 94720
United States
510-643-5416 (Phone)
510-643-8911 (Fax)

Jeffrey M. Perloff

University of California, Berkeley - Department of Agricultural & Resource Economics ( email )

207 Giannini Hall
Berkeley, CA 94720
United States
510-642-9574 (Phone)
510-643-8911 (Fax)

HOME PAGE: http://are.berkeley.edu/~perloff

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