Abstract
The EU dairy sector has undergone and is still facing important changes. The April 2004
accession of the new member states led to an increase in production and demand for dairy
products in the EU. Therefore quantitative information concerning the likely response of
dairy supply to changes in output prices for the new member states is an urgent need for
reliable policy analysis. Our model, based on a microeconomic dual approach, is
dynamic in its specification allowing gradual adjustments in stock variables. Cow milk
and beef and veal productions are directly integrated in the model since in the new
member states there is almost no specialized beef production. A mixed generalized
maximum entropy estimator is developed coping with limited data by exploiting nonsample
information. Non-sample information comes both from economic theory and
agro-economic plausibility. Our estimates suggest overall an inelastic dairy supply
response for Hungary and Poland. In addition we find medium-run complementarity
between the production of cow milk and beef and veal
| Original language | English |
|---|---|
| Title of host publication | 2005 Proceedings of the American Statistical Association, Statistical Computing Section, Alexandria, USA |
| Place of Publication | Alexandria, USA |
| Publisher | American Statistical Association |
| Pages | 4110-4117 |
| Number of pages | 18 |
| Publication status | Published - 2005 |