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Modeling Beef Quality Heterogeneity


  • Lusk, Jayson L.
  • Norwood, F. Bailey


The effects of various supply and demand shifts on beef price, quantity, and industry welfare have been widely studied under the assumption of beef quality homogeneity. In this paper, we construct a model of the beef sector that incorporates differences in beef quality. The model is used to analyze the effect of supply and demand shifts on changes in prices and quantities of high-and low-quality beef and changes in revenue accruing to producers of high-and low-quality beef. Model results indicate that supply and demand shocks have the potential to alter the average quality of beef on the market and the price premium charged for high-quality beef, which has important implications for retailers selling quality-differentiated beef and producers selling cattle on a grid.

Suggested Citation

  • Lusk, Jayson L. & Norwood, F. Bailey, 2005. "Modeling Beef Quality Heterogeneity," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(03), December.
  • Handle: RePEc:ags:joaaec:43483

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    Cited by:

    1. Bhattacharya, Suparna & Azzam, Azzeddine M. & Mark, Darrell R., 2009. "Ethanol and Meat in the U.S.: A Multi-Market Analysis," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49371, Agricultural and Applied Economics Association.

    More about this item


    beef; equilibrium displacement model; multisector model; quality heterogeneity; Q11; Q18;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy


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