Additive, dominance, and additive by additive components of genetic variance and inbreeding depression were estimated for production traits from a group of daughters of young sires from the Canadian Holstein population. First lactations of 92,838 cows were analyzed. Three sire and dam models (additive, additive plus dominance, additive plus dominance plus additive by additive genetic effects), all including regression of the trait on inbreeding coefficient of the cow, were used to estimate the effect of inbreeding on production traits. For all production traits, heritability in the narrow sense was overestimated with the simplest model, in which only the additive effect was fitted. Estimates of dominance variance were low for all traits, .9 to 3%. Additive by additive components were low for milk, 2.8%, and fat yield, 2.8%, but higher for protein yield, 6.8%, and for fat, 9%, and protein percentages, 8.9%. Estimates of inbreeding depression for the five traits were similar across all models (-25, -.9, and -.8 kg; .05% and .05% per 1% increase in inbreeding for milk, fat, and protein production and fat and protein percentages, respectively). More accurate estimates of additive effects might be obtained with the inclusion of nonadditive effects for genetic evaluation. If the estimation of inbreeding depression is the only objective, simple models and small random samples of the population may be adequate.