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The Economics of a Regulated Dairy Market: An Empirical Analysis of Factors Determining the Value of Fluid Milk Quota
Download1995
Veeman, Michele M., Dong, Xizo-yuan
Based on the hypothesis that tradeable marketing quotas may be analysed as an economic input in the production process of regulated firms, the standard capital asset pricing model is adapted to assess the impact of expectations of quota rents on Ontario fluid milk quota values. The analysis...
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The Simple Analytics of Transferable Production Quota: Implications for the Marginal Cost of Ontario Milk Production
Download1996
Using the fact that separate markets exist for used and unused quota, this paper derives a formula to compute the marginal cost of the milk production along a competitive dynamic optimization model. It is showed that, under a perfect competitive quota market, the difference between unused quota...
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