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An Economic Analysis of the U.S. Generic Dairy Advertising Program Using an Industry Model

Published online by Cambridge University Press:  10 May 2017

Donald J. Liu ,
Harry M. Kaiser ,
Olan D. Forker  and
Timothy D. Mount
Donald J. Liu
Affiliation:
Department of Economics, Iowa State University
Harry M. Kaiser
Affiliation:
Department of Agricultural Economics, Cornell University
Olan D. Forker
Affiliation:
Department of Agricultural Economics, Cornell University
Timothy D. Mount
Affiliation:
Department of Agricultural Economics, Cornell University
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Abstract

The market impacts of generic dairy advertising are assessed using an industry model which encompasses supply and demand conditions at the retail, wholesale, and farm levels, and government intervention under the dairy price support program. The estimated model is used to simulate price and quantity values for four advertising scenarios: (1) no advertising, (2) historical fluid advertising, (3) historical manufactured advertising, and (4) historical fluid and manufactured advertising. Compared to previous studies, the dairy-industry model provides additional insights into the way generic dairy advertising influences prices and quantities at the retail, wholesale, and farm levels.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 19 , Issue 1 , April 1990 , pp. 37 - 48
Copyright
Copyright © 1990 Northeastern Agricultural and Resource Economics Association 

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