Title
Error Correction Models and Spatial Market Integration: Evidence for Cattle Markets in the U.S.
Document Type
Article
Journal/Book Title/Conference
Economics Research Institute Study Paper
Volume
21
Publisher
Utah State University Department of Economics
Publication Date
1997
First Page
1
Last Page
28
Abstract
Utilizing Cattle-Fax data, Granger-causality error correction models were used to determine whether the sufficient condition for market integration was satisfied for six cattle classes and twelve markets for which the necessary condition was already indicated. The bivariate results indicated that all the markets satisfied the sufficient condition, at least in one direction. The lightweight animals exhibited bidirectional causality more often than the heavy weight animals. Overall, bidirectional causality was most frequent for 400-pound steers and least frequent for 800-pound steers. The multivariate results were less optimal due to the restricted number of lags.
Recommended Citation
Muwanga, Gertrude S. and Snyder, Donald L., "Error Correction Models and Spatial Market Integration: Evidence for Cattle Markets in the U.S." (1997). Economic Research Institute Study Papers. Paper 131.
http://digitalcommons.usu.edu/eri/131