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Welfare implications of increased US beef promotion

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Demand estimates from a Rotterdam model are combined with a Muth-type equilibrium-displacement model of the US meat sector to isolate the impacts of increased beef advertising on quasi-rents at the farm gate. Results suggest beef and pork producers gained at the expense of poultry producers. The negative externalities generated in the poultry sector are of sufficient magnitude to suggest that under certain conditions the beef advertising programme may be welfare-decreasing for meat producers as a group. The broader social welfare implications of increased beef advertising in terms of its impacts on the environment, heart disease, celebrity and consultant income, Madison-Avenue profits, or the quality of television programming are not considered in this research.

Document Type: Research Article


Publication date: October 1, 1996

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