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Fed Cattle Price Discovery: Directed Acyclic Graph And Time Series Modeling

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Author Info
Lee, Andrew
Kim, Man-Keun

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Abstract

Locating fed cattle price discovery center is revisited using the framework that combines recent progress in causal research with time series analysis. The Bernanke factorization in innovation accounting is obtained by a graphical method called directed acyclic graph which uses data to identify the contemporaneous causal structure among the innovations. This may represent an improvement over the conventional methods which use human judgment and/or theory to supply such information. Results indicate that Kansas market is a dominant price leader where new information is discovered. Contrary to the previous studies, Nebraska market does not appear to be a price discovery location.

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File URL: http://purl.umn.edu/9989
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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN with number 9989.

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Date of creation: 2007
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Handle: RePEc:ags:aaea07:9989

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Related research
Keywords: fed cattle; price discovery; directed acyclic graph; causality; Demand and Price Analysis;

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This page was last updated on 2009-11-26.


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