Postprint version. Published in Agricultural Economics, Volume 2, Issue 3, November 1, 1988, pages 223-230.
NOTE: At the time of publication, the author Wayne H. Howard was not yet affiliated with Cal Poly.
The definitive version is available at https://doi.org/10.1016/0169-5150(88)90004-7.
Linkages between the regulated and unregulated dairy markets in Kenya were examined using an econometric model of the fluid milk intake for eight processing plants. Counter-intuitive results were obtained: an increase in the regulated price was significant in decreasing intake in the regulated market, indicating that a price increase in the regulated market also increased price and quantity supplied in the unregulated market. Lagged rainfall was a proxy for available feed and was highly significant in explaining milk intake in the regulated market.
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