Advanced Search
MyIDEAS: Login

BSE Disease Outbreaks, Structural Change and Market Power in the Canadian Beef Industry

Contents:

Author Info

  • Clark, J. Stephen
  • Cechura, Lukas
  • Berhanu, Adugna
Registered author(s):

    Abstract

    This study examines farm to wholesale prices spreads to measure the impact of the Bovine Spongiform Encephalopathy (BSE) disease outbreak on the Canadian beef industry. The study uses structure break tests developed by Gregory and Hansen (1996) and Hansen (1992) examine possible breaks within cointegrating relationships. The study finds evidence that the industry began a realignment as a result of the UK BSE disease outbreak, and the Canadian BSE disease outbreak was simply the largest realignment of the process beginning with the UK disease outbreak. However, the only statistically significant break was the BSE disease outbreak itself in May 2003. Stability was not restored until the border was reopened in 2005. Specific results indicated that the processing sector exploited the border closure in May 2003 to enhance its market power and that the system returned to a competitive one after the border re-opened in July 2005.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://purl.umn.edu/114097
    Download Restriction: no

    Bibliographic Info

    Paper provided by Structure and Performance of Agriculture and Agri-products Industry (SPAA) in its series Working Papers with number 114097.

    as in new window
    Length:
    Date of creation: Jul 2011
    Date of revision:
    Handle: RePEc:ags:spaawp:114097

    Contact details of provider:
    Web page: http://servsas.fsaa.ulaval.ca/index.php?id=12482&L=1

    Related research

    Keywords: BSE; market power; Canada; beef industry; Agribusiness; Industrial Organization; International Relations/Trade;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    2. Bruce E. Hansen & Mehmet Caner, 1997. "Threshold Autoregressions with a Unit Root," Boston College Working Papers in Economics 381, Boston College Department of Economics.
    3. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
    4. Bakucs, Lajos Zoltan & Ferto, Imre, 2006. "Marketing and pricing dynamics in the presence of structural breaks - the Hungarian pork market," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10031, European Association of Agricultural Economists.
    5. Gregory, Allan W. & Hansen, Bruce E., 1996. "Residual-based tests for cointegration in models with regime shifts," Journal of Econometrics, Elsevier, vol. 70(1), pages 99-126, January.
    6. Bojnec, Stefan, 2002. "Price Transmission and Marketing Margins in the Slovenian Beef and Pork Markets During Transition," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24789, European Association of Agricultural Economists.
    7. Adusei Jumah, 2004. "The long run, market power and retail pricing," Empirical Economics, Springer, vol. 29(3), pages 605-620, 09.
    8. Denis Kwiatkowski & Peter C.B. Phillips & Peter Schmidt, 1991. "Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root: How Sure Are We That Economic Time Series Have a Unit Root?," Cowles Foundation Discussion Papers 979, Cowles Foundation for Research in Economics, Yale University.
    9. Mary K. Muth & Michael K. Wohlgenant, 1999. "A Test for Market Power Using Marginal Input and Output Prices With Application to the U.S. Beef Processing Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 638-643.
    10. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-80, November.
    11. Danny G. Le Roy & K.K. Klein, 2005. "Mad Cow Chaos in Canada: Was It Just Bad Luck or Did Government Policies Play a Role?," Canadian Public Policy, University of Toronto Press, vol. 31(4), pages 381-400, December.
    12. Hansen, Bruce E, 1992. "Tests for Parameter Instability in Regressions with I(1) Processes," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(3), pages 321-35, July.
    13. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
    14. Loppacher, Laura J. & Kerr, William A. & Vliet, Van, 2004. "The Bse Crisis In Canada: A Trade Perspective On Sanitary Barriers," Reports 23936, Estey Centre for Law and Economics in International Trade.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ags:spaawp:114097. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.