Public Reporting of Fed Cattle Grid Prices: Policy Reform Consequences

Scott William Fausti (), Bashir Qasmi () and Mat Diersen ()
Additional contact information
Bashir Qasmi: Department of Economics, South Dakota State University
Mat Diersen: Department of Economics, South Dakota State University

No 70001, Staff Papers from South Dakota State University, Department of Economics

Abstract: Mandatory livestock price reporting was implemented in April 2001. Empirical evidence indicates a significant change in volatility occurred in publicly reported fed cattle grid premiums and discounts after its implementation. Empirical analysis of grid premiums and discounts across the pre-and post-reform periods indicates that increased transparency is compatible with either an increase or a decrease in price volatility in the post-MPR period. Furthermore, it appears that the public price reporting system for weekly grid premiums and discounts failed to provide an adequate level of transparency prior to the implementation of price reporting reforms. Our methodology extends the literature on the use of volatility measures for investigating issues associated with market transparency. This extension can be applied to the development of volatility measures for monitoring the price reporting behavior of firms.

Keywords: cattle pricing; grid pricing; farm policy (search for similar items in EconPapers)
JEL-codes: Q13 Q18 (search for similar items in EconPapers)
Date: 2007-04

Downloads: (external link)
http://econ.sdstate.edu/repec/sda/pdf/sp070001.pdf Final version, 2007 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:sda:staffp:070001

Access Statistics for this paper

More papers in Staff Papers from South Dakota State University, Department of Economics
Contact information at EDIRC.
Series data maintained by David Davis ().