Beef safety shocks and dynamics of vertical price adjustment: The case of BSE discovery in the U.S. beef sector

Agribusiness

Volumn 23, Issue 3, 2007, Pages 333-348

  Saghaian, Sayed H ^a  

^a UNIVERSITY OF KENTUCKY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 79952386750     PISSN: 07424477     EISSN: 15206297     Source Type: Journal    
DOI: 10.1002/agr.20127     Document Type: Article

References (40)

1. Azzam, A.M., & Anderson, D.G. (1996). Assessing competition in meatpacking: Economic history, theory and evidence. Grain Inspection Packers and Stockyards Administration, USDA, report GIPSA-RR-96–6.
2. Azzam, A.M., & Pagoulatos, E. (1990). Testing oligopolistic and oligopsonistic behavior: An application to the U.S. meat-packing industry. Journal of Agricultural Economics, 41, 362–370.
3. Babula, R., Bessler, D., & Payne, W. (2004). Dynamic relationships among U.S. wheat-related markets: Applying directed acylic graphs to a time series model. Journal of Agricultural and Applied Economics, 36(1), 1–22.
4. Bakucs, L.Z., & Ferto, I. (2005). Marketing margins and price transmission on the Hungarian pork meat market. Agribusiness, 21(2), 273–286.
5. Ben-Kaabia, M., Gill, J.M., & Boshnjaku, L. (2002). Price transmission asymmetries in the Spanish lamb sector. Paper presented at the X. Congress of European Association of Agricultural Economists, Zaragoza, Spain, 28–31, August.
6. Bessler, D.A., & Akleman, D.G. (1998). Farm prices, retail prices and directed graphs: Results for pork and beef. American Journal of Agricultural Economics, 80, 1144–1149.
7. Bordo, M.D. (1980). The effects of monetary change on relative commodity prices and the role of long-term contracts. Journal of Political Economy, 88(6), 1088–1109.
8. Chopra, A., & Bessler, D.A. (2005, April). Impact of BSE and FMD on beef industry in U.K. Paper presented at the NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management, St. Louis, Missouri.
9. Enders, W. (1995). Applied econometric time series. New York: Wiley.
10. Enders, W., & Granger, C.W.J. (1998). Unit-root tests and asymmetric adjustment with an example using the term structure of interest rates. Journal of Business & Economic Statistics, 16, 304–311.
11. Engle, R.E., & Granger, C.W.J. (1987). Cointegration and error correction: Representation, estimation, and testing. Econometrica, 55, 251–276.
12. Eviews 5 user's guide. (2004). Irvine, CA: Quantitative Micro Software.
13. Gardner, B.L. (1975). The farm-retail spread in a competitive food industry. American Journal of Agricultural Economics, 57, 399–409.
14. Goodwin, B.K., & Harper, D.C. (2000). Price transmission, threshold behavior, and asymmetric adjustment in the U.S. pork sector. Journal of Agricultural and Applied Economics, 32(3), 543–553.
15. Goodwin, B.K., & Holt, M.T. (1999). Price transmission and asymmetric adjustment in The U.S. beef sector. American Journal of Agricultural Economics, 81(3), 630–637.
16. Hahn, W.F. (2004). Beef and pork values and price spreads explained. Washington, DC: U.S. Department of Agriculture, Economics Research Service. Outlook Report No. LDP-M-118-01.
17. Heien, D.M. (1980). Markup pricing in a dynamic model of the food industry. American Journal of Agricultural Economics, 62, 10–18.
18. Hendry, D.F. (1986). Econometric modeling with cointegrated variables: An overview. Oxford Bulletin of Economics and Statistics, 48, 201–212.
19. Hicks, J. (1974). The crisis in Keynesian economics. New York: Basic Books.
20. Holloway, G.J. (1991). The farm-retail price spread in an imperfectly competitive food industry. American Journal of Agricultural Economics, 73(4), 979–989.
21. Hyde, C.E., & Perloff, J.M. (1998). Multimarket power estimation: The Australian retail meat sector. Applied Economics, 30, 1169–1176.
22. Johansen, S., & Juselius, K. (1992). Testing structural hypothesis in a multivariate cointegration analysis of the PPP and UIP for the UK. Journal of Econometrics, 53, 211–244.
23. Jumah, A. (2004). The long run, market power and retail pricing. Empirical Economics, 29, 605–620.
24. Karp, L.S., & Perloff, J.M. (1993). A dynamic model of oligopoly in the coffee export market. American Journal of Agricultural Economics, 75, 448–457.
25. Lloyd, T., McCorriston, S., Morgan, W., & Rayner, T. (2003). Food scares, market power and relative price adjustment in the UK. Discussion Papers in Economics, University of Nottingham, Discussion Paper No. 03/18.
26. Luoma, A., Luoto, J., & Taipale, M. (2004, November). Threshold cointegration and asymmetric price transmission in Finish beef and pork markets (Working Paper No. 70). Pellervo Economic Research Institute, Helsinki.
27. Mathews, K.H., Hahn, W.F., Nelson, K.E., Duewer, L.A., & Gustafson, R.A. (1999). U.S. beef industry: Cattle cycles, price spreads, and packer concentration, Technical Bulletin No. 1874. Washington, DC: Department of Agriculture, Economic Research Service.
28. Mazzocchi, M. (2005). Modeling consumer reaction to multiple food scares. Department of Agricultural and Food Economics Research Paper. The University of Reading, unpublished.
29. McCorriston, S., Morgan, W., & Rayner, T. (1998). Processing technology, market power and price transmission. Journal of Agricultural Economics, 49, 185–201.
30. Miller, J.D., & Hayenga, M.L. (2001). Price cycles and asymmetric price transmission in the U.S. pork market. American Journal of Agricultural Economics, 83, 551–561.
31. Okun, A. (1975). Inflation: Its mechanics and welfare costs. Brooking Papers on Economic Activity, 2, 351–390.
32. Pelzman, S. (2000). Prices rise faster than they fall. Journal of Political Economy, 108(3), 446–502.
33. Piggott, N.E., & Marsh, T.L. (2004). Does food safety information impact U.S. meat demand? American Journal of Agricultural Economics, 86, 154–174.
34. RATS 6 user's guide. (2004). Estima. Evanston, IL 60201, USA.
35. Schmidt, M.B. (2000). The dynamic behavior of wages and prices: Co-integration tests within a large macroeconomic system. Southern Economic Journal, 67, 123–138.
36. Spirtes, P., Scheines, R., Meek, C., Richardson, T., Glymour, C., Boomsam, A., et al. (1999). TETRAD II-version 3.1, tools for causal modeling, user's manual. Pittsburgh PA. Carnegie Mellon University.
37. Spirtes, P., Glymour, C., & Scheines, R. (2000). Causation, prediction, and search. New York: Springer-Verlag.
38. Swanson, N.R., & Granger, C.W.J. (1997). Impulse response functions based on a causal approach to residual orthogonalization in vector autoregressions. Journal of American Statistical Association, 92, 357–367.
39. Tiffin, R., & Dawson, P.J. (2000). Structural breaks, cointegration and the farm retail price spread for lamb. Applied economics, 32, 1281–1286.
40. Zachariasse, L.C., & Bunte, F.H.J. (2003, February). How are farmers faring in the changing balance of power along the food chain. Paper presented at OECD-Conference on Changing Dimensions of the Food Economy: Exploring the policy issues, Den Haag.