Carcass Quality Volume and Grid Pricing: An Investigation of Cause and Effect

Scott William Fausti (), Bashir A. Qasmi () and Jing Li ()
Additional contact information
Bashir A. Qasmi: Department of Economics, South Dakota State University
Jing Li: Department of Economics, South Dakota State University

No 90001, Staff Papers from South Dakota State University, Department of Economics

Abstract: The relationship between publicly reported weekly grid premiums and discounts for specific carcass characteristics and the percentage of those characteristics reflected in total weekly slaughter volume (i.e., proportional slaughter volume) is investigated. Granger Causality and multi-lag VAR models were used to investigate if grid premiums and discounts were efficiently transmitting market signals to producers with respect to carcass quality attributes. The empirical evidence indicates that there is little evidence to suggest that grid prices are providing efficient price signals to buyers and sellers with respect to market valuation of desirable and undesirable beef carcass characteristics.

Keywords: grid pricing; price discovery; price reporting; slaughter cattle (search for similar items in EconPapers)
JEL-codes: Q18 Q13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-mkt and nep-pke
Date: 2009-01

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http://ageconsearch.umn.edu/bitstream/46215/2/SAEA.meeting.papera.2009.final.pdf (application/pdf)

Related works:
Working Paper: Carcass Quality Volume and Grid Pricing: An Investigation of Cause and Effect (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:sda:staffp:090001

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