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Relative prices and relative supplies in the UK beef meat industry: A wavelet cross-correlation analysis

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  • Fousekis, Panos

Abstract

The objective of the paper is to assess the contemporaneous and temporal links between the relative beef prices and the composition of beef supply (slaughters) in the UK, using weekly data and wavelet cross-correlation analysis. For female bovine animals (heifers and adult cows) and for most of the frequencies considered, the price ratio has a negative contemporaneous association with the supply ratio while for male bovine animals (steers and young bulls) it has a positive one. The difference in the sign of the contemporaneous link is in line with the argument in the Animal Economics literature that, while bovines (female or male) are both consumption and capital goods, the value of females as capital tends to be greater than that of males. Moreover, the contemporaneous links are asymmetric (i.e., their absolute magnitude depends on the frequency they are calculated). The temporal links are strong. For female bovines and for small frequencies, the relative prices are likely to lead relative supplies; for male bovines, it holds the opposite.

Suggested Citation

  • Fousekis, Panos, 2024. "Relative prices and relative supplies in the UK beef meat industry: A wavelet cross-correlation analysis," The Journal of Economic Asymmetries, Elsevier, vol. 30(C).
    • Handle: RePEc:eee:joecas:v:30:y:2024:i:c:s1703494924000367
    DOI: 10.1016/j.jeca.2024.e00387
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    More about this item

    Keywords

    Beef; Prices; Supplies; Wavelets; Correlation; Asymmetry;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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