Hedonic Pricing of Dairy Bulls - An Alternative Index of Genetic Merit
AbstractThis study investigates the use of hedonic pricing to identify the value of relevant production and type traits for dairy bulls in Alberta. A hedonic pricing model is estimated that models semen price as a function of individual production and longevity characteristics for a sample of Holstein bulls. This model corrects for sources of statistical bias in the data (i.e., censored data and endogenous supply problems). The results suggest that the most important characteristics in valuing dairy bulls are milk volume, protein and fat content, general conformation, body capacity, the popularity of the bull, and the probability that the bull's semen may be in short supply. This methodology may be used to establish a method of forecasting semen prices for newly proven bulls. The valuation procedure may be easily updated and adjusted as producers' breeding objectives change over time due to the changing economic environment. Further extensions of this method may be done to incorporate other characteristics and/or to assess shifts in producer breeding objectives over time. The results of this analysis suggest that hedonic pricing may be a superior method of placing a value on production and type characteristics for dairy bulls than the Lifetime Profit Index, currently being used by the Canadian dairy industry.
Download InfoIf 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.
Bibliographic InfoPaper provided by University of Alberta, Department of Resource Economics and Environmental Sociology in its series Project Report Series with number 24035.
Date of creation: 1995
Date of revision:
Contact details of provider:
Postal: 515 General Services Building, University of Alberta, Edmonton, AlbertaT6G 2H1
Phone: (780) 492-4225
Fax: (780) 492-0268
Web page: http://www.rees.ualberta.ca/
More information through EDIRC
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.:
- Espinosa, Juan Andres & Goodwin, Barry K., 1991. "Hedonic Price Estimation For Kansas Wheat Characteristics," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(01), July.
- Ethridge, Don E. & Davis, Bob, 1982. "Hedonic Price Estimation For Commodities: An Application To Cotton," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(02), December.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Kerr, William A., 1984. "Selective Breeding, Heritable Characteristics And Genetic-Based Technological Change In The Canadian Beef Cattle Industry," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(01), July.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
- Jordan, Jeffrey L. & Shewfelt, R.L. & Prussia, Stanley E. & Hurst, W.C., 1985. "Estimating Implicit Marginal Prices Of Quality Characteristics Of Tomatoes," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(02), December.
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.