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European Association of Agricultural Economists >
2008 International Congress, August 26-29, 2008, Ghent, Belgium >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/43659
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| Title: | Structural Change in the Dairy Sectors of Germany and The Netherlands - A Markov Chain Analysis |
| Authors: | Huettel, Silke
Jongeneel, Roelof A. |
| Keywords: | Markov Chain
Milk Quota
Structural Change |
| Issue Date: | 2008 |
| Abstract: | With the milk quota announced to be
abolished in the future, the dairy sector is going to face a
significant policy regime shift. This paper sets out to
analyze the impact of milk quotas on the dairy farm
structure of two important milk producing member
states: Germany and the Netherlands. Based on proper
behavioral assumptions, non stationary Markov chain
models are specified and estimated using a generalized
cross entropy procedure, which takes into account both
sample and prior information. Moreover four mobility
indicators characterizing structural change are
developed and calculated. Structural change in the dairy
sector as measured by the mobility measures is faster in
West Germany than in the Netherlands. However, in the
transition region East Germany structural change
outpaces that of the traditional German and Dutch dairy
sectors by a factor two or more. The introduction of
milk quotas as of April 1, 1984 reduced overall farm
mobility for the Netherlands, but increased mobility in
West Germany. However, in both cases the milk quotas
lead to an increase in upward mobility. |
| URI: | http://purl.umn.edu/43659 |
| Institution/Association: | European Association of Agricultural Economists>2008 International Congress, August 26-29, 2008, Ghent, Belgium |
| Total Pages: | 10 |
| Collections: | 2008 International Congress, August 26-29, 2008, Ghent, Belgium
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