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Disaggregated Analysis Of Short-Run Beef Supply Response

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  • Ospina, Enrique
  • Shumway, C. Richard

Abstract

Conceptual problems in model specification of beef supply response studies are investigated and a simultaneous equation model is formulated to estimate annual U.S. carcass supply, demand, and inventories of beef. Three basic issues are addressed: (a) disaggregation, (b) simultaneity, and (c) differentiation between current and expected price effects. Empirical results indicate positive supply response of each quality type of steers and heifers, and negative supply response of cows to current own-price changes. The derived aggregate supply elasticity is positive. The effects of grain price changes on beef price, supply and composition are also evaluated.

Suggested Citation

  • Ospina, Enrique & Shumway, C. Richard, 1979. "Disaggregated Analysis Of Short-Run Beef Supply Response," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 4(2), pages 1-18, December.
    • Handle: RePEc:ags:wjagec:32295
    DOI: 10.22004/ag.econ.32295
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    References listed on IDEAS

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    1. Larry Langemeier & Russell G. Thompson, 1967. "Demand, Supply, and Price Relationships for the Beef Sector, Post-World War II Period," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(1_Part_I), pages 169-183.
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    3. Bentley, Ernest & Waters, James R. & Shumway, C. Richard, 1976. "Determining Optimal Replacement Age Of Beef Cows In The Presence Of Stochastic Elements," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 8(2), pages 1-6, December.
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    5. Enrique Ospina & C. Richard Shumway, 1978. "Possible Implications of Voids in USDA Cattle Slaughter Data: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(1), pages 148-150.
    6. Thomas E. Elam, 1975. "Canadian Supply Functions for Livestock and Meat: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(2), pages 364-365.
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    8. George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936, December.
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    Cited by:

    1. Subotnik, Abraham, 1981. "Theoretical Background and Empirical Supply Estimates of the U.S. Livestock Sector," Staff Reports 316797, United States Department of Agriculture, Economic Research Service.
    2. Smith, Rodney B.W. & Gardner, Bruce L., 1989. "Expectations, Futures Prices, and Feedlot Operator Behavior," Working Papers 197622, University of Maryland, Department of Agricultural and Resource Economics.
    3. Eswaramoorthy, K., 1991. "U.S. livestock production and factor demand: a multiproduct dynamic dual approach," ISU General Staff Papers 1991010108000010523, Iowa State University, Department of Economics.
    4. Muth, Mary K. & Wohlgenant, Michael K., 1999. "Measuring The Degree Of Oligopsony Power In The Beef Packing Industry In The Absence Of Marketing Input Quantity Data," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-14, December.
    5. Perekhozhuk, Oleksandr & Matyukha, Andriy & Glauben, Thomas, 2011. "Estimating the Degree of Buyers' Market Power: Evidence from the Ukrainian Meat Processing Industry," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114782, European Association of Agricultural Economists.
    6. Brester, Gary W. & Lhermite, Pascale & Goodwin, Barry K. & Hunt, Melvin C., 1993. "Quantifying The Effects Of New Product Development: The Case Of Low-Fat Ground Beef," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(2), pages 1-12, December.
    7. Angirasa, Aditi K. & Shumway, C. Richard & Nelsen, T. C. & Cartwright, T. C., 1981. "Integration, Risk, and Supply Response: A Simulation and Linear Programming Analysis of An East Texas Cow-Calf Producer," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 13(1), pages 89-98, July.
    8. Balsevich, Fernando & Schuetz, Paul & Perez, Edwin, 2006. "Cattle Producer' Participation in Market Channels in Central America: Supermarkets, Processors, and Auctions," Staff Paper Series 11482, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    9. Smith, Rodney B.W. & Gardner, Bruce L., 1993. "Expectations, Futures Prices, And Feedlot Behavior," Staff Papers 13444, University of Minnesota, Department of Applied Economics.
    10. Ospina, Enrique & Shumway, Richard, 1980. "Impact Of Corn Prices On Beef Product Mix And Prices," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 278917, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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