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Alternative Theories and Empirical Approaches to Price Discovery: An Application to Fed Cattle

Published online by Cambridge University Press:  28 April 2015

Jared G. Carlberg  and
Clement E. Ward
Jared G. Carlberg
Affiliation:
Department of Agribusiness and Agricultural Economics, University of Manitoba, Winnipeg, Manitoba, Canada
Clement E. Ward
Affiliation:
Department of Agricultural Economics, Oklahoma State University, Stillwater, Oklahoma
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Abstract

Price discovery is a frequent topic of research, but many times is not clearly defined and thus purported to cover a myriad of topics. This article provides two alternative theories as the basis for one line of price discovery research. Empirical models consistent with the two theories are estimated using a common data set. Empirical results differ as expected. This article evidences why the theoretical basis for an empirical model depends on clearly defining the objective(s) of the research.

Keywords

derived demandfed cattlepartial adjustment modelprice discoveryQ13Q11Q12C51C22
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 35 , Issue 3 , December 2003 , pp. 649 - 661
Copyright
Copyright © Southern Agricultural Economics Association 2003

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