IDEAS home Printed from https://ideas.repec.org/p/ags/aaea14/168759.html

Effects of Alternative Marketing Arrangements on Spot Market Price Distribution in the U.S. Hog Market

Author

Listed:
  • Kim, Jong-Jin
  • Zheng, Xiaoyong

Abstract

We propose a stylized model that elucidates the two channels through which alternative marketing arrangements (AMAs) can affect the spot market price in livestock markets. The direct effect of AMAs on spot market price works through their effect on demand and supply conditions in the spot market. This effect has been widely studied in the literature. The indirect effect works through their effect on spot market price volatility. This effect has been ignored in the literature. We then estimate a dynamic (time series) model with data from the U.S. hog market to test our model implications and quantify the two effects. We find increases in the use of AMAs increase spot market price volatility and decrease spot market price level. The short-run effects are small but the long-run effects are nontrivial.

Suggested Citation

  • Kim, Jong-Jin & Zheng, Xiaoyong, 2014. "Effects of Alternative Marketing Arrangements on Spot Market Price Distribution in the U.S. Hog Market," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 168759, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:168759
    DOI: 10.22004/ag.econ.168759
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/168759/files/poster.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.168759?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. is not listed on IDEAS
    2. Shang, Max Zongyuan & McEwan, Ken, "undated". "The Boundary of the Farm: Homegrown versus Purchased Feed on Ontario Swine Farms," Annual Meeting, 2017, June 18-21, Montreal, Canada 264191, Canadian Agricultural Economics Society.
    3. Max Zongyuan Shang & Ken McEwan, 2021. "The make‐or‐buy decision of feed on livestock farms: Evidence from Ontario swine farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(3), pages 353-368, September.

    More about this item

    Keywords

    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aaea14:168759. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.