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| Aadland, David; Bailey, DeeVon; Feng, Shelly. |
| This paper investigates the response of beef cattle producers to changes in the price of cattle. Previous research has suggested that there may be a negative short-run supply response to a permanent increase in the price of cattle. We build a dynamic, rational expectations model that predicts that the supply response is generally positive, even for permanent shocks in the short run, and nests the negative supply response as a special case for appropriately restricted demand shocks. Using annual US time series data (1930-1997) and a simultaneous-equations econometric approach, we find a positive short-run supply response in the cow market and mixed evidence in the heifer market. |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Demand and Price Analysis; Livestock Production/Industries. |
| Ano: 2000 |
URL: http://purl.umn.edu/21887 |
