Pass-through in the United States Beef Industry: An Update and ExpansionMelissa G.S. McKendree and Glynn Tonsor No 235942, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association Abstract: Understanding how signals for change are transmitted from primary consumer demand through the supply chain is key for long-term prosperity of the cattle industry. Zhao, Du, and Hennessy (2011) used Ricardian rent theory (RRT) to determine if complete pass-through occurs from fed cattle and corn prices to feeder cattle prices. Due to changes in the beef industry since 2004, this study updates and expands Zhao, Du, and Hennessy (2011). This article presents three analyses. First, an update using data from 2004 to 2016 is presented. Next, an analysis using futures market feeder and live cattle prices from 1994 to 2016 identifies four different regimes and tests RRT in each regime. Finally, Kansas cash feeder cattle and expected live cattle prices using historical basis are used to test RRT with two structural breaks. Evidence supporting RRT in cattle markets is mixed. The future direction of expansion for this study is discussed. Keywords: Demand and Price Analysis; Livestock Production/Industries; Marketing; Production Economics (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235942 Access Statistics for this paper More papers in 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association Contact information at EDIRC. |
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