Rationalizing Time Series Differences Between Cow-Calf And Feeder Returns
This paper tries to justify the observation of different return patterns in the upstream and downstream sectors of US beef production. It builds a dynamic rational expectation model separating the cow-calf and feeding sector with the former sector being the residual claimer. The model shows that the cow-calf operation has positively autocorrelated return pattern while the feeding operation return only reflects random shock. Empirical study shows that 85.4% of the Ricardian rent is passed through to the upstream sector, and the downstream sector can only claim the unexpected return resulting from random shocks.
|Date of creation:||2009|
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- Randal R. Rucker & Oscar R. Burt & Jeffrey T. LaFrance, 1984.
"An Econometric Model of Cattle Inventories,"
Monash Economics Working Papers
archive-25, Monash University, Department of Economics.
- David M. Aadland, 2000.
"The Economics Of Cattle Supply,"
Computing in Economics and Finance 2000
57, Society for Computational Economics.
- Dabin Wang & William G. Tomek, 2007. "Commodity Prices and Unit Root Tests," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 873-889.
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