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Cross-Sector Relationships Between the Corn Feed Grains and Livestock and Poultry Economies

  • Marsh, John M.
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    A systems econometric model of the livestock (beef and pork), poultry (broiler), and corn sectors was estimated to evaluate cross-sector relationships. The equilibrium multipliers and comparative statics indicate unequal cross-effect of market disturbances, e.g., shocks in the livestock and poultry markets impact corn demand and supply more than shocks in the corn market impact livestock and poultry demands and supplies. Recent 2003 mad cow disease (BSE) problems in Canada and the United States display nontrivial cross-effects. For example, the BSE occurrences reduce real corn revenue in the United States by $0.62 billion, or 5.0% of its 2003 revenue.

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    File URL: http://purl.umn.edu/8595
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    Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

    Volume (Year): 32 (2007)
    Issue (Month): 01 (April)
    Pages:

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    Handle: RePEc:ags:jlaare:8595
    Contact details of provider: Web page: http://waeaonline.org/

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