RATIONALIZING TIME SERIES DIFFERENCES BETWEEN COW-CALF AND FEEDER RETURNS

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.


Issue Date:
2009
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/49486
Total Pages:
47
Series Statement:
Selected Paper
611129




 Record created 2017-04-01, last modified 2017-08-25

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