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Modeling Live Cattle Supply With Different Price Expectations

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  • Zhang, Feng
  • Epperson, James E.
  • Houston, Jack E.

Abstract

Using live cattle production data from 1995 to 2001, we investigated live cattle supply represented by both net placement and marketings with two price expectation models, naïve and futures. The results show significant evidence of different price expectations when cattle feeders make decisions on net placement and marketings of live cattle. Our study also suggests that cattle feeders are risk averse on average.

Suggested Citation

  • Zhang, Feng & Epperson, James E. & Houston, Jack E., 2006. "Modeling Live Cattle Supply With Different Price Expectations," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35447, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeaso:35447
    DOI: 10.22004/ag.econ.35447
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    File URL: https://ageconsearch.umn.edu/record/35447/files/sp06zh01.pdf
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    References listed on IDEAS

    as
    1. Bruce L. Gardner, 1976. "Futures Prices in Supply Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(1), pages 81-84.
    2. Jarvis, Lovell S, 1974. "Cattle as Capital Goods and Ranchers as Portfolio Managers: An Application to the Argentine Cattle Sector," Journal of Political Economy, University of Chicago Press, vol. 82(3), pages 489-520, May/June.
    3. David Aadland & DeeVon Bailey, 2001. "Short-Run Supply Responses in the U.S. Beef-Cattle Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 826-839.
    4. Frances Antonovitz & Richard Green, 1990. "Alternative Estimates of Fed Beef Supply Response to Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 475-487.
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    Cited by:

    1. Mahdi Ghodsi, 2015. "Distinguishing Between Genuine and Non-Genuine Reasons for Imposing Technical Barriers to Trade: A Proposal Based on Cost-Benefit Analysis," wiiw Working Papers 117, The Vienna Institute for International Economic Studies, wiiw.

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    Keywords

    Livestock Production/Industries;

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