Adjustment Mechanisms for Milk Support Prices
Year: 1985
Type: preprint
Abstract: Weaknesses of parity worsened the recent surplus of milk. A better support-price mechanism would have sent clear signals to reduce milk production. In response to a congressional mandate, this report recommends ways of improving performance of mechanisms based on price indices. Index-based mechanisms are not necessarily superior to other methods of setting support prices. However, a mechanism incorporating an appropriately weighted price index, a longrun adjustor, and shortrun flexibility could have performed much better than did parity.
Authors: Miller, James J., Sleight, Lynn G.
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Zero hunger
Open Access status: green
OpenAlex ID: W3206069233