Quarter Horse Supply and Demand: Welfare Analysis and Impacts of the Equine Processing Ban
Despite the existence of over 2.5 million Quarter Horses in the U.S., there has heretofore been little information available on the structural parameters underpinning the Quarter Horse market. In this paper, we compiled a unique data set, merging together information on registrations from the American Quarter Horse Association and price data from a large regional horse auction. The data is used to estimate the supply of yearling Quarter Horses using biological production lags to identify the key structural parameters; we find an own-price elasticity of short- and long-run supply of 0.32 and 0.27. An inverse demand function is also estimated, and after accounting for endogeneity, we find a price flexibility of own-price yearling demand of -0.71. Results reveal that demand shifted inward following the horse processing ban, resulting in deadweight annual losses of over $4 million in the yearling Quarter Horse market.
|Date of creation:||01 Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Neibergs, J. Shannon & Thalheimer, Richard, 1997. "Price Expectations And Supply Response In The Thoroughbred Yearling Market," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(02), December.
- Stoeppel, Kelly M. & Maynard, Leigh J., 2006.
"Hedonic Price Analysis of Thoroughbred Broodmares in Foal,"
31983, University of Kentucky, Department of Agricultural Economics.
- Maynard, Leigh J. & Stoeppel, Kelly M., 2007. "Hedonic Price Analysis of Thoroughbred Broodmares in Foal," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 25(2).
- Stoeppel, Kelly M. & Maynard, Leigh J., 2006. "Hedonic Price Analysis of Thoroughbred Broodmares in Foal," Staff Papers 37871, University of Kentucky, Department of Agricultural Economics.
- Vestal, Mallory K. & Lusk, Jayson L. & Cooper, Steven R. & Ward, Clement E., 2012. "What Are the Consequences of United States Government Slaughter Policies on Horse Prices?," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119766, Southern Agricultural Economics Association.
- Brester, Gary W. & Marsh, John M., 1983. "A Statistical Model Of The Primary And Derived Market Levels In The U.S. Beef Industry," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(01), July.
- J. Shannon Neibergs, 2001. "A hedonic price analysis of thoroughbred broodmare characteristics," Agribusiness, John Wiley & Sons, Ltd., vol. 17(2), pages 299-314.
- Neibergs, J. Shannon & Thalheimer, Richard, 1997. "Price Expectations and Supply Response in the Thoroughbred Yearling Market," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 29(02), pages 419-435, December.
- Taylor, Mykel R. & Dhuyvetter, Kevin C. & Kastens, Terry L. & Douthit, Megan & Marsh, Thomas L., 2006. "Show Quality Quarter Horse Auctions: Price Determinants and Buy-Back Practices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(03), December.
- Lansford, Notie H., Jr. & Freeman, David W. & Topliff, Donald R. & Walker, Odell L., 1998. "Hedonic Pricing of Race-Bred Yearling Quarter Horses Produced by Quarter Horse Sires and Dams," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 16(2).
- Lange, Kelly Y. & Johnson, Jeffrey W. & Wilson, Kris & Johnson, Wesley, 2010. "Price Determinants of Ranch Horses Sold at Auction in Texas," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56491, Southern Agricultural Economics Association.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea12:124536. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.