Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

19

Publisher

Utah State University Department of Economics

Publication Date

1997

Rights

Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at digitalcommons@usu.edu.

First Page

1

Last Page

32

Abstract

The study investigated the nature of price innovations, based on the pattern exhibited in the price series, using a random walk and a composite deterministic trend/random walk model. The random walk model failed to unfold the underlying patterns. The composite model indicated that shocks to prices of utility slaughter cows were temporary regardless of the region, while shocks to prices of steers and heifers were either temporary, persistent but stable, or persistent and explosive depending on the region and cattle class. Shocks to prices of cattle in Iowa, in particular, were temporary regardless of the cattle class.

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