A GENERALIZED SUPPLY RESPONSE/FACTOR DEMAND MODEL AND ITS APPLICATION TO THE FEEDER CATTLE MARKET

The appropriate specification of expectations in empirical models of supply response or factor demand is discussed. A general model that admits both extrapolative and rational expectations is formulated and analyzed. The model is used to investigate the decision making process of cattle feeders by incorporating information on futures prices (as representations of rational forecasts) and lagged prices. The findings provide some evidence that cattle feeders form their expectations of future prices using both types of information.


Issue Date:
1985-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32322
Published in:
Western Journal of Agricultural Economics, Volume 10, Number 2
Page range:
245-253
Total Pages:
9




 Record created 2017-04-01, last modified 2017-08-24

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