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Please use this identifier to cite or link to this item: http://purl.umn.edu/46382

Title: Imputing Dairy Producers' Quota Discount Rate Using the Individual Export Milk Program in Quebec
Authors: Doyon, Maurice
Brodeur, Catherine
Gervais, Jean-Philippe
Issue Date: 2006-11-06
Series/Report no.: Number 7
2006
Abstract: Trade liberalization scenarios are often evaluated using sophisticated programming models that rely on a number of assumptions related to demand and supply parameters. One challenge researchers often encounter in the calibration of dairy trade liberalization models is to identify the supply response of producers under production quotas. The existence of production quotas in the Canadian dairy industry implies departures from standard marginal cost pricing. Under traditional net present value models, an assumption about the discount factors attached to production quotas must be made to infer the supply response of Canadian dairy producers following a change in the economic environment (e.g., import tariffs). The Individual Export Milk (IEM) program in Quebec generated an opportunity to estimate dairy producers’ discount factors for production quotas conditional on different assumptions about structural parameters such as producers’ risk preferences and cost efficiency.
URI: http://purl.umn.edu/46382
Institution/Association: CAFRI: Current Agriculture, Food and Resource Issues>Number 07, 2006
Total Pages: 11
From Page: 120
To Page: 130
Collections:Number 07, 2006

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