Introduction
Part I. Estimating Supply Responses of Milk Production
1. Model Development 2
1.1. Short run milk supply response model 3
1.2. Intermediate run supply response model 3
2. Empirical Estimation 5
2.1. Data 5
2.2. Estimation of short run supply response 5
2.3. Estimation of intermediate run supply response 6
2.4. Calculation of supply elasticity 7
Part II. Estimating Demand for Dairy Products
1. Demand for Five Dairy Products: estimated using Annual Data 9
1.1. Model specification 9
1.2. Data 10
1.3. Estimation results 10
2. Demand for Milk Powder: estimated using quarterly data 11
2.1. Model Specification 12
2.2. Data 13
2.3. Empirical Results 13
Part III. A Component based Investigation of Policy Changes
1. Brief Overview of Dairy Product Trade in Korea 16
2. The DDA Round of WTO Negotiations 18
3. Simulation Model 19
4. Simulation Parameters: Component-Based Parameters 23
4.1. Component Consumption Data 23
4.2. Derivation of Component Elasticities 24
4.3. Derivation of Component Tariffs 25
4.4. Other Parameter Specification 25
5. Policy Scenarios 26
6. Simulation Results 28
7. Concluding Remarks 23
References 37
Introduction
Part I. Estimating Supply Responses of Milk Production
1. Model Development 2
1.1. Short run milk supply response model 3
1.2. Intermediate run supply response model 3
2. Empirical Estimation 5
2.1. Data 5
2.2. Estimation of short run supply response 5
2.3. Estimation of intermediate run supply response 6
2.4. Calculation of supply elasticity 7
Part II. Estimating Demand for Dairy Products
1. Demand for Five Dairy Products: estimated using Annual Data 9
1.1. Model specification 9
1.2. Data 10
1.3. Estimation results 10
2. Demand for Milk Powder: estimated using quarterly data 11
2.1. Model Specification 12
2.2. Data 13
2.3. Empirical Results 13
Part III. A Component based Investigation of Policy Changes
1. Brief Overview of Dairy Product Trade in Korea 16
2. The DDA Round of WTO Negotiations 18
3. Simulation Model 19
4. Simulation Parameters: Component-Based Parameters 23
4.1. Component Consumption Data 23
4.2. Derivation of Component Elasticities 24
4.3. Derivation of Component Tariffs 25
4.4. Other Parameter Specification 25
5. Policy Scenarios 26
6. Simulation Results 28
7. Concluding Remarks 23
References 37
