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Garch Time-Series Models: An Application To Retail Livestock Prices

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Author Info
Aradhyula, Satheesh V.
Holt, Matthew T.

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Abstract

This article applies recent developments in time-series modeling to analyze the retail prices of beef, pork, and chicken. Specifically, generalized autoregressive conditional heteroscedasticity (GARCH) models were fitted to these data to determine if, unlike more traditional time-series models, the conditional variances of the underlying stochastic processes are nonconstant. The estimation results indicate that the constant conditional variances assumption can be rejected. Furthermore, ex post forecast intervals generated from the GARCH processes indicate that the forecasting accuracy of the estimated models has varied widely over time with substantial volatility occurring during the 1970s and early 1980s.

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File URL: http://purl.umn.edu/32111
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Publisher Info
Article provided by Western Agricultural Economics Association in its journal Western Journal of Agricultural Economics.

Volume (Year): 13 (1988)
Issue (Month): 02 (December)
Pages:
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Handle: RePEc:ags:wjagec:32111

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Related research
Keywords: Demand and Price Analysis; Livestock Production/Industries; Research Methods/ Statistical Methods;

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Cited by:
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  1. Rezitis, Anthony, 2003. "Volatility Spillover Effects in Greek Consumer Meat Prices," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 4(1), January. [Downloadable!]
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This page was last updated on 2009-12-11.


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