IDEAS home Printed from https://ideas.repec.org/a/cup/agrerw/v39y2010i03p457-467_00.html

The Effect of the Livestock Mandatory Reporting Act on Market Transparency and Grid Price Dispersion

Author

Listed:
  • Fausti, Scott W.
  • Qasmi, Bashir A.
  • Li, Jing
  • Diersen, Mathew A.

Abstract

The Livestock Mandatory Reporting Act (MPR) of 1999 was implemented in April 2001. Empirical evidence indicates a significant change in intra-week price dispersion associated with publicly reported fed cattle grid premiums and discounts occurring after MPR implementation. The research objective is to evaluate the effect of increased market transparency resulting from implementation of MPR, on grid intra-week premium and discount dispersion levels. Empirical results suggest that increased transparency is compatible with intra-week dispersion levels increasing. Increased dispersion suggests that during the pre-MPR period weekly premium and discount data may have been drawn from a non-representative sample. From the empirical evidence, it is concluded that reform of the livestock price-reporting system appears to have been necessary in the case of publically reported grid premiums and discounts.

Suggested Citation

  • Fausti, Scott W. & Qasmi, Bashir A. & Li, Jing & Diersen, Mathew A., 2010. "The Effect of the Livestock Mandatory Reporting Act on Market Transparency and Grid Price Dispersion," Agricultural and Resource Economics Review, Cambridge University Press, vol. 39(3), pages 457-467, October.
    • Handle: RePEc:cup:agrerw:v:39:y:2010:i:03:p:457-467_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1068280500007449/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

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


    Cited by:

    1. Chanjin Chung & Johnna Rushin & Prasanna Surathkal, 2018. "Impact of the livestock mandatory reporting act on the vertical price transmission within the beef supply chain," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 562-578, June.
    2. Franken, Jason R.V. & Parcell, Joe L. & Tonsor, Glynn T., 2011. "Impact of Mandatory Price Reporting on Hog Market Integration," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(2), pages 229-241, May.
    3. Fausti, Scott W. & Wang, Gerald & Diersen, Matthew A. & Qasmi, Bashir A., "undated". "Pricing Fed Cattle on a Grid: An Analysis of the Incentive Mechanism over Time," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119670, Southern Agricultural Economics Association.
    4. Gloria Solano Hermosilla & Pavel Ciaian & Jonas Kathage, 2019. "Market transparency: Costs of external data reporting by private operators in the EU agri-food supply chain - A survey-based analysis," JRC Research Reports JRC116927, Joint Research Centre.
    5. Parcell, Joe & Franken, Jason, 2024. "Determinants of Beef Market Price Dynamics," 2024 Conference, April 22-23, 2024, St. Louis, Missouri 379010, NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    6. Schroeder, Ted C., 2025. "Agricultural Economics Research as Cattle and Beef Markets Ascended from Demise," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 50(4), December.
    7. Franken, Jason R.V. & Parcell, Joe L., 2012. "Evaluation of Market Thinness for Hogs and Pork," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(4), pages 461-475, November.
    8. Koontz Stephen R & Ward Clement E, 2011. "Livestock Mandatory Price Reporting: A Literature Review and Synthesis of Related Market Information Research," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-33, July.
    9. Scott W. Fausti & Hernan A. Tejeda & Matthew A. Diersen, 2024. "Macroeconomic shock effects on beef carcass premiums," Agricultural Economics, International Association of Agricultural Economists, vol. 55(5), pages 784-794, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:agrerw:v:39:y:2010:i:03:p:457-467_00. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/age .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.