Examining long-run relationships between Australian beef prices |
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| Authors: | Hui-Shung Chang & Garry Griffith |
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| Institution: | Department of Agricultural and Resource Economics, University of New England, Armidale, New South Wales.,;NSW Agriculture Beef Centre, University of New England, Armidale, New South Wales. |
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| Abstract: | Cointegration and impulse response analyses are used to investigate the short-run and long-run dynamics of the Australian beef market. The aim of this study is to determine whether long-run relationships existed between Australian beef prices at the farm, wholesale and retail levels. Based on monthly data from 1971 to 1994, the results show that all three prices considered are cointegrated. Furthermore, the wholesale price is found to be weakly exogenous. The latter result might be an indication of market inefficiency due in part to price levelling often practised in the beef marketing system. |
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