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Abstract

A derived reduced form simultaneous equation model is specified to explore the hypothesis of joint determination of prices for table quality and manufacturing quality beef cattle in Australia. Quarterly data for the period 1966 (1) to 1979 (4) are used. Estimated coefficients for the two types of cattle suggest significant price transmission effects between the two markets. This study may be viewed as an attempt to explicitly recognize the heterogeneous nature of beef cattle in the context of a formal econometric model.

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