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RATIONALIZING TIME SERIES DIFFERENCES BETWEEN COW-CALF AND FEEDER RETURNS AgEcon
Zhao, Huan; Hennessy, David A..
This paper tries to justify the observation of different return patterns in the upstream and downstream sectors of US beef production. It builds a dynamic rational expectation model separating the cow-calf and feeding sector with the former sector being the residual claimer. The model shows that the cow-calf operation has positively autocorrelated return pattern while the feeding operation return only reflects random shock. Empirical study shows that 85.4% of the Ricardian rent is passed through to the upstream sector, and the downstream sector can only claim the unexpected return resulting from random shocks.
Tipo: Conference Paper or Presentation Palavras-chave: Ricardian rent; Cow-calf return; Supply chain; Agribusiness; Agricultural Finance; Farm Management; Industrial Organization; Livestock Production/Industries.
Ano: 2009 URL: http://purl.umn.edu/49486
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Reason Analysis and Risk Prevention of Soaring Price of Traditional Chinese Medicinal Materials AgEcon
Zhao, Huan; Liu, Jian-qiu; Qu, Kai-yue; Feng, Li; He, Yi.
In recent years, the price of traditional Chinese medicinal materials soars continuously, and the resulting price risk increasingly looms large, which has critically affected midstream and downstream industries and peoples' demand for drug, and imperiled healthy and orderly development of traditional Chinese medicinal industries. Based on the status quo of continuous skyrocketing price of traditional Chinese medicinal materials at present, we winkle out the root cause of soaring price as follows: the supply and demand lose balance; the production costs hike up; there are other factors responsible for soaring price. This paper further analyses the impact of sharp increase in price of traditional Chinese medicinal materials on ail links of industry chain as...
Tipo: Article Palavras-chave: Traditional Chinese medicinal materials; Soaring price; Risk prevention; Industry chain; China; Agribusiness.
Ano: 2011 URL: http://purl.umn.edu/122948
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Pass-Through in United States Beef Cattle Prices AgEcon
Zhao, Huan; Du, Xiaodong; Hennessy, David A..
Feeder cattle are fattened to become fed live cattle six months later. The U.S. feeder cattle industry is intensively competitive, so that market efficiency suggests feeder cattle prices should fully reflect feed prices and information on future fed cattle prices. Employing a long time series (1979-2004) of feeder cattle futures, live cattle futures, and local corn prices, we test whether complete pass-through occurs. The results indicate that an increase of a dollar per hundred pounds in the live cattle price leads to an increase of approximately $1.48 per hundred pounds in the feeder cattle price in one month, about 93% of complete pass-through. The corresponding negative effect of a corn price increase is about 87% of complete pass-through. By contrast...
Tipo: Working or Discussion Paper Palavras-chave: Feeder cattle; Futures market efficiency; Live cattle; Structural change.; Institutional and Behavioral Economics; Livestock Production/Industries; Marketing; Production Economics.
Ano: 2009 URL: http://purl.umn.edu/52085
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