THE SOCIAL WELFARE CONSEQUENCES OF PRICE STABILIZATION AND RISK: AN ANNOTATED BIBLIOGRAPHY

The stated purpose of federal regulation of milk markets is to provide for "orderly" marketing, but very little work has been done on analysis of the social welfare consequences of price or income stabilization in the dairy industry. This omission is surprising, since unpredictable price variability often is listed as a major source of instability in milk markets before federal regulation, and stable, predictable prices are often discussed as a major benefit of regulation. This bibliography discusses studies that analyze the social welfare consequences of price stabilization with risk-neutral consumers and producers, as well as those with risk-averse producers. Also discussed are studies that attempt to measure risk aversion