IDEAS home Printed from https://ideas.repec.org/p/ags/aaea16/235664.html
   My bibliography  Save this paper

The Great Recession and Vertical Price Transmission in the U.S Beef Market

Author

Listed:
  • Darbandi, Elham
  • Saghaian, Sayed

Abstract

This study analyses the price adjustment of the U.S beef sector using monthly prices of the farm, wholesale and retail levels for the period of 1970-2014. The objectives are to investigate both speed and magnitude of price adjustment. To this purpose, the Vector Error Correction Model (VECM) and historical decomposition graphs are applied. The results indicate that retail prices have lower speed of adjustment than wholesale prices. Also, the magnitude of price adjustment in the presence of the Great Recession shock, as an exogenous shock, is different for each level of the U.S. beef marketing chain such that wholesale prices show a higher magnitude of price adjustment toward the long-run equilibrium. Finally, it is concluded that with respect to both speed and magnitude of the price adjustment, the U.S. beef sector has asymmetric price adjustment, pointing to inefficiency of the U.S. beef supply chain. These results have welfare implications for the U.S. beef consumers and producers.

Suggested Citation

  • Darbandi, Elham & Saghaian, Sayed, 2016. "The Great Recession and Vertical Price Transmission in the U.S Beef Market," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235664, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235664
    DOI: 10.22004/ag.econ.235664
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/235664/files/AAEA%202016%20full%20paper.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.235664?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
    ---><---

    Citations

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


    Cited by:

    1. Solomon Odiase & Sayed H. Saghaian, 2022. "Impact of COVID-19 Pandemic on Vertical Price Transmission in the U.S. Fresh Banana Market," Sustainability, MDPI, vol. 14(10), pages 1-16, May.

    More about this item

    Keywords

    Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries;
    All these 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:aaea16:235664. 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.