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Intertemporal Price Adjustments In The Beef Market: A Reduced Form Analysis Of Weekly Data

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  • Marsh, John M.
  • Brester, Gary W.

Abstract

An intertemporal reduced form model is estimated for boxed beef, carcass, and slaughter prices on a weekly basis. The results indicate that prices respond jointly to changes in economic information within weeks t and t - 1, supporting time-series studies showing farm and wholesale prices to be nearly instantaneously related. However, the existence of market uncertainty entails significant intertemporal lags, revealed by prices stabilizing 9-14 weeks subsequent to a market shock. The model results imply that postponing marketings of fed cattle to capitalize on expected price advantages would be risky and that selling cattle carcass grade and weight is more favorable when prices respond to increases in beef production.

Suggested Citation

  • Marsh, John M. & Brester, Gary W., 1989. "Intertemporal Price Adjustments In The Beef Market: A Reduced Form Analysis Of Weekly Data," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(2), pages 1-11, December.
    • Handle: RePEc:ags:wjagec:32354
    DOI: 10.22004/ag.econ.32354
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    References listed on IDEAS

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    Cited by:

    1. Joseph, Kishore & Garcia, Philip & Peterson, Paul E., 2016. "Does the Boxed Beef Price Inform the Live Cattle Futures Price?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236166, Agricultural and Applied Economics Association.

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