Economics Research Institute Study Paper
Utah State University Department of Economics
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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.
Muwanga, Gertrude S. and Snyder, Donald L., "Temporary, Persistent Stable, or Persistent Exploxive Innovations in Cattle Price Series" (1997). Economic Research Institute Study Papers. Paper 129.