Demand, Supply, and Price Relationships for the Beef Sector, Post-World War II Period

Abstract

A simultaneous equation beef model which allows for simultaneity between supplies and demands is formulated and estimated. The supply of beef is partitioned into fed, domestic nonfed, and import components; the demand for beef is split into fed and nonfed components. The findings, which are comparable with those of several earlier studies as far as the price flexibilities of total demand and price elasticity of total supply are concerned, indicate that analysis have underestimated the income elasticity of demand for fed beef by focusing on all beef and overlooking the inferior income‐demand relationship for nonfed beef. By use of these results, the depression in fed beef prices in the 1962–1..