Deregulation of the Norwegian Market for Milk Products

R.J. Brunstad, I. Gaasland and Erling Vårdal ()

Norway; Department of Economics, University of Bergen from Department of Economics, University of Bergen

Abstract: In this paper we use a price endogenous mathematical model to estimate the national welfare losses induced by the Norwegian dairy policy. Firstly, we focus on welfare losses at the processing level due to price discrimination between different uses of the milk and cross-subsidization of export. Secondly, we focus on inefficiency at the farm level due to small scale farm units and a distribution of production which does not reflect regional comparative advantages. Thirdly, we demonstrate that employment in rural areas can be upheld at far lower costs if the processing industry is deregulated and the rural farmers are supported through more direct payments.

Keywords: MATHEMATICAL ANALYSIS; AGRICULTURE; DEREGULATION (search for similar items in EconPapers)
JEL-codes: C60 Q13 (search for similar items in EconPapers)
Pages: 17 pages
Date: 1998
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: deregulation on the Norwegian Market for Milk Products (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:bereco:1298

Access Statistics for this paper

More papers in Norway; Department of Economics, University of Bergen from Department of Economics, University of Bergen Department of Economics, University of Bergen Fosswinckels Gate 6. N-5007 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().