CAPTIVE SUPPLY IMPACT ON THE U.S. FED CATTLE PRICE: AN APPLICATION OF NONPARAMETRIC ANALYSIS

Conventional regression technique is restrictive because it assumes a specific functional form for the model and the constancy of parameters. Nonparametric method, however, is flexible and supplementary to parametric analysis. In this study, impact of captive supply on the U.S. fed cattle cash market price is investigated via nonparametric analysis. Results indicate that the price effect of captive supply does not appear until its share reaches about 20% of the total cattle procurement. Beyond this point, the U.S. fed cattle price decreases approximately $0.20/cwt ~ $0.40/cwt for each percent increase in the captive supply share.


Issue Date:
Oct 21 2011
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/174502
Published in:
Journal of Rural Development/Nongchon-Gyeongje, Volume 34, Issue 4
Page range:
103-115
Total Pages:
13




 Record created 2017-04-01, last modified 2017-08-27

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