Optimal Agricultural Policy with Biotechnology: Bovine Somatotropin and the Dairy Sector

Loren W. Tauer and Harry Kaiser

No 121536, Staff Papers from Cornell University, Department of Applied Economics and Management

Abstract: A control model of the U.S. dairy sector was constructed to determine optimal policy when bovine somatotropin is released. Social welfare defined as consumer plus producer surplus minus adjustment and net government costs was maximized. Control variables were the milk support price and government purchases of cows. Compared to previous simulation research where government policy and adoption were modeled exogenously, the results show that policy not overly disruptive to the dairy sector is possible.

Keywords: Agricultural and Food Policy; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 40
Date: 1990-05
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:cudasp:121536

DOI: 10.22004/ag.econ.121536

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