Abstract
This is the first econometric study of dynamic beef supply response to incorporate risk aversion or, more specifically, price variance. Autoregressive distributed lag (ADL) models are estimated for cow-calf and feedlot operations using aggregate data for Alberta. In all cases, output price variance has a negative impact on output supply and investment. Moreover, the impacts of expected price on supply response are greater in magnitude and significance than in risk-neutral models.
| Original language | English |
|---|---|
| Pages (from-to) | 519-539 |
| Number of pages | 21 |
| Journal | Journal of Agricultural and Resource Economics |
| Volume | 28 |
| Issue number | 3 |
| Publication status | Published - Dec 2003 |
| Externally published | Yes |
Keywords
- Autoregressive distributed lag model
- Beef supply response
- Dynamics
- Uncertainty
ASJC Scopus subject areas
- Animal Science and Zoology
- Agronomy and Crop Science
- Economics and Econometrics