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Dynamic Price Adjustments Between Commercial and Purebred Cattle Markets

Published online by Cambridge University Press:  28 April 2015

Larry W. VanTassell  and
David A. Bessler
Larry W. VanTassell
Affiliation:
Agricultural Economics at the University of Tennessee
David A. Bessler
Affiliation:
Agricultural Economics at Texas A&M University
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Abstract

Vector autoregression was utilized to investigate dynamic relationships existing between prices of purebred bulls and prices of slaughter steers, utility cows, feeder calves, and cow-calf pairs. Results suggest purebred bull prices respond most quickly to an increase in utility cow prices (proxy for slaughter bull prices). Feeder calf prices exhibited the most pronounced positive effect on the price of herd sires, with a lagged response which took over two years to build.

Keywords

cattle pricesvector autoregressionprice adjustments
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 20 , Issue 2 , December 1988 , pp. 137 - 144
Copyright
Copyright © Southern Agricultural Economics Association 1988

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