Economics Research Institute Study Paper
Utah State University Department of Economics
This paper builds a dynamic rational expectations model describing the supply of cattle. The theoretical model inlproves on existing models by allowing cow-calf operators to make period-by-period investment decisions on both the cow and calf margins, separates the markets for fed and unfed beef, and considers a rich set of exogenous shocks. The model is calibrated and used to simulate artificial data that replicates several empirical regularities associated with the cattle cycle.
Aadland, David, "The Economics of Cattle Supply" (2000). Economic Research Institute Study Papers. Paper 187.