Please use this identifier to cite or link to this item:
https://hdl.handle.net/1959.11/22232
Title: | Spatial price premium transmission for Meat Standards Australia-graded cattle: the vulnerability of price premiums to outside shocks | Contributor(s): | Morales, L Emilio (author)![]() ![]() |
Publication Date: | 2017 | DOI: | 10.1111/1467-8489.12221 | Handle Link: | https://hdl.handle.net/1959.11/22232 | Abstract: | Studies of market integration show that price changes are transmitted spatially through arbitrage. Transmission across differentiated agricultural products is important to investigate, but it has not been explored given its complexities for assessment. Using data from Australian cattle markets, we examine the dynamics of Meat Standards Australia price premium transmission between states. An impulse response function analysis using Bayesian vector autoregression with sign restriction identifi- cation shows that shocks to prices and price premiums are partially transmitted contemporaneously between markets and it takes several weeks to complete transmission. In addition, we find an asymmetry of price and price premium shocks originating in Southern Queensland that have an inverse immediate impact in New South Wales, and take months to transmit the usual price response. This outcome may be explained by differences in cattle availability in each state, which can be related to forage availability due to weather conditions. Based on these results, producers can forecast fluctuations on price premiums and adjust their cattle supply accordingly. | Publication Type: | Journal Article | Source of Publication: | The Australian Journal of Agricultural and Resource Economics, 61(4), p. 590-609 | Publisher: | Wiley-Blackwell Publishing Asia | Place of Publication: | Australia | ISSN: | 1467-8489 1364-985X |
Fields of Research (FoR) 2008: | 140201 Agricultural Economics | Fields of Research (FoR) 2020: | 380101 Agricultural economics | Socio-Economic Objective (SEO) 2008: | 910299 Microeconomics not elsewhere classified | Socio-Economic Objective (SEO) 2020: | 150599 Microeconomics not elsewhere classified | Peer Reviewed: | Yes | HERDC Category Description: | C1 Refereed Article in a Scholarly Journal |
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Appears in Collections: | Journal Article UNE Business School |
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