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Cross-Sector Relationships Between the Corn Feed Grains and Livestock and Poultry Economies

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  • Marsh, John M.
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    Abstract

    A systems econometric model of the livestock (beef and pork), poultry (broiler), and corn sectors was estimated to evaluate cross-sector relationships. The equilibrium multipliers and comparative statics indicate unequal cross-effect of market disturbances, e.g., shocks in the livestock and poultry markets impact corn demand and supply more than shocks in the corn market impact livestock and poultry demands and supplies. Recent 2003 mad cow disease (BSE) problems in Canada and the United States display nontrivial cross-effects. For example, the BSE occurrences reduce real corn revenue in the United States by $0.62 billion, or 5.0% of its 2003 revenue.

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    Bibliographic Info

    Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

    Volume (Year): 32 (2007)
    Issue (Month): 01 (April)
    Pages:

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    Handle: RePEc:ags:jlaare:8595

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    Web page: http://waeaonline.org/
    More information through EDIRC

    Related research

    Keywords: autoregressive distributed lags; comparative statics; equilibrium multipliers; revenue adjustments; Agribusiness; Demand and Price Analysis;

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    Cited by:
    1. Lusk, Jayson L. & Norwood, F. Bailey, 2009. "Some Economic Benefits and Costs of Vegetarianism," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), October.
    2. Brester, Gary W. & Marsh, John M. & Atwood, Joseph A., 2009. "Evaluating the Farmer’s-Share-of-the-Retail-Dollar Statistic," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(2), August.
    3. John D. Anderson & Keith H. Coble, 2010. "Impact of renewable fuels standard ethanol mandates on the corn market," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 49-63.
    4. Araujo-Enciso, Sergio Rene, 2012. "The relationship between trade and price volatility in the Mexican and US maize markets," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122544, European Association of Agricultural Economists.

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