Expectations, The Lucas Critique and Agricultural Policy: An Econometric Application to the U.S. Dairy Economy

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Date

1988

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Ohio State University. Department of Agricultural, Environmental, and Development Economics

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Abstract

The Lucas critique is developed in a conceptual and econometric application of a rational or 'model consistent I expectations paradigm for modeling producers' economic behavior in a simple macro-economic model of the United States dairy economy. It is demonstrated that the parameters of the estimated behavioral equations are functions of the specific dairy price-support rule in effect.

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Exact date of working paper unknown.

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