Optimal Agricultural Policy with Biotechnology: Bovine Somatotropin and the Dairy Sector

A control model of the U.S. dairy sector was constructed to determine optimal policy when bovine somatotropin is released. Social welfare defined as consumer plus producer surplus minus adjustment and net government costs was maximized. Control variables were the milk support price and government purchases of cows. Compared to previous simulation research where government policy and adoption were modeled exogenously, the results show that policy not overly disruptive to the dairy sector is possible.


Issue Date:
1990-05
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/121536
Total Pages:
40
Series Statement:
SP 90-09




 Record created 2017-04-01, last modified 2017-08-26

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