A theoretical and empirical investigation of the supply response in the U.S. beef-cattle industry
AbstractThis paper investigates the response of beef cattle producers to changes in the price of cattle. Previous research has suggested that there may be a negative short-run supply response to a permanent increase in the price of cattle. We build a dynamic, rational expectations model that predicts that the supply response is generally positive, even for permanent shocks in the short run, and nests the negative supply response as a special case for appropriately restricted demand shocks. Using annual U.S. time-series data (1930-1997) and a simultaneous-equations econometric approach, we find a positive short-run supply response in the cow market and mixed evidence in the heifer market.
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 Utah State University, Department of Economics in its series Working Papers with number 2000-12.
Length: 36 pages
Date of creation:
Date of revision:
Other versions of this item:
- Aadland, David & Bailey, DeeVon & Feng, Shelly, 2000. "A Theoretical And Empirical Investigation Of The Supply Response In The U.S. Beef-Cattle Industry," 2000 Annual meeting, July 30-August 2, Tampa, FL 21887, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- NEP-AGR-2006-08-12 (Agricultural Economics)
- NEP-ALL-2006-08-12 (All new papers)
- NEP-CSE-2006-08-12 (Economics of Strategic Management)
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.:
- Harry J. Paarsch, 1985. "Micro-economic Models of Beef Supply," Canadian Journal of Economics, Canadian Economics Association, vol. 18(3), pages 636-51, August.
- Ravn, Morten O. & Uhlig, Harald, 2001.
"On Adjusting the HP-Filter for the Frequency of Observations,"
CEPR Discussion Papers
2858, C.E.P.R. Discussion Papers.
- Morten O. Ravn & Harald Uhlig, 2001. "On Adjusting the HP-Filter for the Frequency of Observations," CESifo Working Paper Series 479, CESifo Group Munich.
- Uhlig, H.F.H.V.S. & Ravn, M., 1997. "On Adjusting the H-P Filter for the Frequency of Observations," Discussion Paper 1997-50, Tilburg University, Center for Economic Research.
- Rosen, Sherwin & Murphy, Kevin M & Scheinkman, Jose A, 1994.
Journal of Political Economy,
University of Chicago Press, vol. 102(3), pages 468-92, June.
- Rosen, S. & Murphy, K.M. & Scheinkman, J.A., 1993. "Cattle Cycles," University of Chicago - Economics Research Center 93-2, Chicago - Economics Research Center.
- Sherwin Rosen & Kevin M. Murphy & Jose A. Scheinkman, 1993. "Cattle Cycles," NBER Working Papers 4403, National Bureau of Economic Research, Inc.
- King, Robert G. & Plosser, Charles I. & Rebelo, Sergio T., 1988. "Production, growth and business cycles : I. The basic neoclassical model," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 195-232.
- Nerlove, Marc & Fornari, Ilaria, 1998. "Quasi-rational expectations, an alternative to fully rational expectations: An application to US beef cattle supply," Journal of Econometrics, Elsevier, vol. 83(1-2), pages 129-161.
- Capps, Oral, Jr. & Farris, Donald E. & Byrne, Patrick J. & Namken, Jerry C. & Lambert, Charles D., 1994. "Determinants Of Wholesale Beef-Cut Prices," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(01), July.
- Marsh, John M., 1991. "Derived Demand Elasticities: Marketing Margin Methods Versus An Inverse Demand Model For Choice Beef," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(02), December.
- Randal R. Rucker & Oscar R. Burt & Jeffrey T. LaFrance, 1984. "An Econometric Model of Cattle Inventories," Development Research Unit Working Paper Series archive-25, Monash University, Department of Economics.
- Yair Mundlak & He Huang, 1996. "International Comparisons of Cattle Cycles," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 855-868.
- Ndayitwayeko, W-M. & Odhiambo, M.O. & Nyangweso, P.M. & Korir, M., 2012. "Determinants of Beef Meat Supply in Burundi: A Vector Error Correction Model Approach Applied to structural Nerlov Paradign," 2012 Eighth AFMA Congress, November 25-29, 2012, Nairobi, Kenya 159414, African Farm Management Association (AFMA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John Gilbert).
If references are entirely missing, you can add them using this form.