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Searching for the Possible Sources of Grader Bias in Beef Grading: A Non-parametric Approach

Author

Listed:
  • Jang, Ju Won
  • Ishdorj, Ariun
  • Anderson, David P.

Abstract

Because grading errors can impede the integrity of the beef grading system, it is important to investigate the existence and possible sources of grader bias. In this article, we use a non-parametric method to identify grader bias in the beef grading system. Using simulation studies, we show that this method performs well without the normal distribution assumption. We find that macroeconomic events and graders’ mood may affect grades using a non-parametric method. Further, the premium/discount analysis in this article suggested that, under the grid price system, livestock producers could have lost financially if human graders had been replaced by camera-grading system during our sample period.

Suggested Citation

  • Jang, Ju Won & Ishdorj, Ariun & Anderson, David P., 2015. "Searching for the Possible Sources of Grader Bias in Beef Grading: A Non-parametric Approach," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205734, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea15:205734
    DOI: 10.22004/ag.econ.205734
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    References listed on IDEAS

    as
    1. Philippe Marcoul & John Lawrence, 2007. "Grader Bias in Cattle Markets? Evidence from Iowa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 890-903.
    2. Chalfant, James A. & James, Jennifer S. & Lavoie, Nathalie & Sexton, Richard J., 1999. "Asymmetric Grading Error And Adverse Selection: Lemons In The California Prune Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-23, July.
    Full references (including those not matched with items on IDEAS)

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