INTERTEMPORAL PRICE ADJUSTMENTS IN THE BEEF MARKET: A REDUCED FORM ANALYSIS OF WEEKLY DATA

John M. Marsh and Gary W. Brester

Western Journal of Agricultural Economics, 1989, vol. 14, issue 2, 11

Abstract: An intertemporal reduced form model is estimated for boxed beef, carcass, and slaughter prices on a weekly basis. The results indicate that prices respond jointly to changes in economic information within weeks t and t - 1, supporting time-series studies showing farm and wholesale prices to be nearly instantaneously related. However, the existence of market uncertainty entails significant intertemporal lags, revealed by prices stabilizing 9-14 weeks subsequent to a market shock. The model results imply that postponing marketings of fed cattle to capitalize on expected price advantages would be risky and that selling cattle carcass grade and weight is more favorable when prices respond to increases in beef production.

Keywords: Demand and Price Analysis; Livestock Production/Industries (search for similar items in EconPapers)
Date: 1989
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/32354/files/14020235.pdf (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: https://EconPapers.repec.org/RePEc:ags:wjagec:32354

DOI: 10.22004/ag.econ.32354

Access Statistics for this article

More articles in Western Journal of Agricultural Economics from Western Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().