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Please use this identifier to cite or link to this item: http://purl.umn.edu/104624

Title: Impact of Mandatory Price Reporting on Hog Market Integration
Authors: Franken, Jason R.V.
Parcell, Joseph L.
Tonsor, Glynn T.
Authors (Email): Franken, Jason R.V. (frankenj@missouri.edu)
Keywords: cointegration
hog markets
mandatory price reporting
market integration
regime shift
JEL Codes: Q13
Issue Date: 2011-05
Abstract: This research examines whether mandatory price reporting (MPR) impacted price relationships among U.S. hog markets. Markets are cointegrated before and after MPR enactment, but not fully integrated in either period. Terminal markets adjust to shocks in the Iowa-Southern Minnesota market more quickly and Iowa-Southern Minnesota prices adjust to shocks in terminal markets more slowly following MPR enactment. Granger causality tests indicate a causal flow from terminal markets to Iowa-Southern Minnesota prices before MPR and a causal reversal after MPR enactment. These results likely reflect decreases in volume of negotiated sales, particularly in terminal markets, and greater reliance on mandatorily reported prices for market information.
URI: http://purl.umn.edu/104624
Institution/Association: Journal of Agricultural and Applied Economics>Volume 43, Number 02, May 2011
Total Pages: 13
From Page: 229
To Page: 241
Collections:Volume 43, Number 02, May 2011

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