Advanced Search
MyIDEAS: Login

Risk Behavior and Rational Expectations in the U.S. Broiler Market

Contents:

Author Info

  • Satheesh V. Aradhyula
  • Matthew T. Holt

Abstract

This study examines the empirical implications of extending the rational expectations hypothesis (REH) to include price uncertainty. Unlike previous studies, a general estimation framework that incorporates both the restrictions on structural parameters and the variance-covariance terms is developed. A new time series approach known as GARCH processes is also used to generate time-varying expectations of both the means and the variances of exogenous variables in the REH model with risk. The empirical application is with a quarterly model of the U.S. broiler industry; the results indicate that the rational expectation of price variance is an important determinant of broiler supply. Additionally, a formal test indicates that the restrictions implied by the REH cannot be rejected. The restricted model also compares favorably with an unrestricted version that uses instruments for the mean and the variance of expected prices.

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://www.card.iastate.edu/publications/DBS/PDFFiles/88wp33.pdf
File Function: Full Text
Download Restriction: no

File URL: http://www.card.iastate.edu/publications/synopsis.aspx?id=690
File Function: Online Synopsis
Download Restriction: no

Bibliographic Info

Paper provided by Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University in its series Food and Agricultural Policy Research Institute (FAPRI) Publications with number 88-wp33.

as in new window
Length:
Date of creation: Jul 1988
Date of revision:
Handle: RePEc:ias:fpaper:88-wp33

Contact details of provider:
Postal: 578 Heady Hall, Ames, IA 50011-1070
Phone: (515)294-1183
Fax: (515)294-6336
Email:
Web page: http://www.fapri.iastate.edu/
More information through EDIRC

Related research

Keywords:

Other versions of this item:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

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:ias:fpaper:88-wp33. 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: ().

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.