Dynamic adjustment in the U.S. dairy industry

A dual model is used to examine the dynamic structure of the U.S. dairy industry. Properties implied by the theory of the competitive firm and independent adjustment of two quasi-fixed inputs, labor and herd size, are tested and not rejected. Instantaneous adjustment, however, is soundly rejected fo...

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Bibliographic Details
Published in:American journal of agricultural economics 1988-11, Vol.70 (4), p.837-847
Main Authors: Howard, W.H, Shumway, C.R
Format: Article
Language:English
Subjects:
adjustment costs
ANALISIS DE COSTOS
ANALYSE DES COUTS
CAMBIO TECNOLOGICO
Convexity
dairy
Dairy cattle
Dairy industry
dual
DUALISME
DUALISMO ECONOMICO
dynamic
Dynamic modeling
Economic models
EFFECTIF DU CHEPTEL
Elasticity of demand
ESTADOS UNIDOS DE AMERICA
ESTRUCTURA DE LA PRODUCCION
ETATS-UNIS
flexible accelerator
Herds
INDUSTRIA LECHERA
INDUSTRIE LAITIERE
Milk
MODELE
MODELOS
NUMERO DE CABEZAS
POLITICA DE PRODUCCION
POLITIQUE DE LA PRODUCTION
production
PROGRES TECHNIQUE
STRUCTURE DE PRODUCTION
Supply
Technological change
TRABAJO
TRAVAIL
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Summary:A dual model is used to examine the dynamic structure of the U.S. dairy industry. Properties implied by the theory of the competitive firm and independent adjustment of two quasi-fixed inputs, labor and herd size, are tested and not rejected. Instantaneous adjustment, however, is soundly rejected for each quasi-fixed input. Input adjustment to optimal levels is estimated to take about two years for labor and ten for cows. Quality adjustments of the labor and cow series do not fully embody the technological change that has occurred in this industry over the study period.
ISSN:0002-9092
1467-8276
DOI:10.2307/1241925