deregulation on the Norwegian Market for Milk Products

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

Working Papers from Norwegian School of Economics and Business Administration-

Abstract: In this paper we use a price endogenous mathematical programming 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-subsidisation of export. Secondly, we focus on inefficiency at the farm level due to small-scale farm units and a distribution of production that does not reflect regional comparative advantages. Thirdly, we demonstrate that employment in depressed 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: PRICES; MILK; DEREGULATION (search for similar items in EconPapers)
JEL-codes: Q13 Q18 R58 (search for similar items in EconPapers)
Pages: 16 pages
Date: 1998
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Working Paper: Deregulation of the Norwegian Market for Milk Products (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:norgee:15/98

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