Economics Research Institute Study Paper
Utah State University Department of Economics
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Utilizing weekly data from Cattle-Fax, the speed of adjustment for prices of six cattle classes and twelve marketing areas were determined using the short-run correlation procedure. The number of optimal lags were identified using the Akaike final prediction criterion. Overall, there was no speed of adjustment adhered to by all cattle classes and regions. The speed of adjustment varied depending on the origin of the shock, the region receiving the shock, and the cattle class. Overall, varying arbitrage opportunities for exploiting price disequilibria existed for all cattle classes.
Muwanga, Gertrude S. and Snyder, Donald L., "Speed of Price Adjustment and Arbitrage Opportunities for the Selected Cattle Markets in the Western and Central Regions of the United States" (1997). Economic Research Institute Study Papers. Paper 134.