Price Transmission and Food Scares in the U.S. Beef Sector

Posted: 4 Nov 2005

See all articles by Grigorios Livanis

Grigorios Livanis

University of Florida - Warrington College of Business Administration - Department of Economics; Northeastern University - International Business & Strategy

Charles Moss

University of Florida - Food & Resource Economics Department

Date Written: June 2005

Abstract

The advent of mad cow disease in Canada and in the United States raises numerous concerns regarding consumer reaction to information in the United States. To examine the role of consumer reaction to information we examine the response of price spreads in the U.S. beef market to a Food Safety Index derived from Lexis-Nexis. Specifically, we estimate a vector error correction model to examine the long- and short-run effect of news on price spreads. Our results indicate that informational shocks are fairly transient in the retail prices, but persist at the wholesale and farm level.

Keywords: vector error correction, food safety, price spread, beef markets

JEL Classification: Q12, L11, C32

Suggested Citation

Livanis, Grigorios and Moss, Charles B., Price Transmission and Food Scares in the U.S. Beef Sector (June 2005). Available at SSRN: https://ssrn.com/abstract=838944

Grigorios Livanis (Contact Author)

University of Florida - Warrington College of Business Administration - Department of Economics ( email )

224 Matherly Hall
P.O. Box 117140
Gainesville, FL 32611-7140
United States

HOME PAGE: http://plaza.ufl.edu/livanis/

Northeastern University - International Business & Strategy ( email )

Boston, MA 02115
United States

Charles B. Moss

University of Florida - Food & Resource Economics Department ( email )

1175 McCarty Hall
P.O. Box 110240
Gainesville, FL 32611-0240
United States
352-294-7630 (Phone)
352-392-3646 (Fax)

HOME PAGE: http://ricardo.ifas.ufl.edu/l

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