The CAPRI version used for this study is standard comparative-static, . adjustment costs are not considered and policy simulations reveal a situation where dairy farmers were given time to adjust their fixed factors to the new policy framework. By incorporating an econometric supply module for the most representative dairy farms in the EU, the update of the CAPRI model allows for a better representation of the dairy sector, as additional information on milk quota rents and price supply elasticities are now explicitly introduced for dairy products. .
