An Objective View of the Northeast or New England Dairy Compact and Its Effect on Other Markets

2/9/01

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Table of Contents

An Objective View of the Northeast or New England Dairy Compact and Its Effect on Other Markets

My Points

Part I

Why I Did This Study?

Interstate Compacts Authorized Under the Compact Clause

Dairy Compacts

Benefits of Multi-regional Compacts

Problems with Multi-regional Dairy Compacts

Northeast Interstate Dairy Compact

Method of Analysis

Dairy Industry Model

PPT Slide

Model--continued

Baseline

Critical Assumptions to Consider

Model Assumptions

Model Scenarios

Model Results for Dairy Compact Regions

Model Results for Non-Compact Regions

Study Critics:

Academic Journal Article

Study Conclusions

Warning: Results are Conditioned on Many Assumptions

Part II

Why I Did the Study

Northeast Dairy Compact

Example Calculation of the NE Compact, December 1999

Compact Over-order Obligations in New England

Methodology—Simple!!

How I Computed Impact of Compact

Average Results over Compact Period Jul 97 – Dec 99

Economic Impact of the NE Compact

Economic Impact of the New England Compact--continued

Boston Retail vs. Compact Price, $/gal.

My Conclusions of the Northeast Study

Could the High Price of Milk Be a Result of Market Mergers?

Why Do People Really Hate Compacts?

Conclusions

Author: Ken Bailey 

Email: bthomas@agecon.uga.edu

Home Page: http://www.ces.uga.edu/Agriculture/agecon/workshops/sdcmain.htm

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