A Regional Analysis of Milk Supply Response in the United States

Jean-Paul Chavas (), Alan Francis Kraus and Edward V. Jesse

Review of Agricultural Economics, 1990, vol. 12, issue 2, 149-164

Abstract: A regional model of U.S. milk supply response is specified and estimated. The results suggest that, while being very inelastic in the short run, milk supply tends to be elastic in the longer-run. Also, the effects of milk price or feed price on milk production are found to vary across regions. This indicates that dairy pricing policy and feed grain policy do affect the regional evolution of U.S. dairy production.

Date: 1990
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