Document Type
Thesis - University Access Only
Award Date
2004
Degree Name
Master of Science (MS)
Department / School
Economics
First Advisor
Scott Fausti
Abstract
Mandatory price reporting system was implemented in April 2001 to help improve price discovery in the livestock markets. Prior to April 2001, meat packers were not required by law to report transactions and pricing of livestock purchased. Collected data on the National Weekly Grid Premium and Discount Report was analyzed from before the implementation of mandatory price reporting until December 2003 to determine if there was a structural change in the informational content the meat packers were releasing to the Agricultural Marketing News Service (AMS).
Analysis of the data included time series plots, two-sample hypothesis testing, unit root testing, a test for ARCH disturbances, and a time series component model. The tests examined whether the variability in reported grid premium and discount values changed after the implementation of mandatory price reporting. If premium and discount variability changed as a result of mandatory price reporting, then it was hypothesized that there was a structural shift in the informational content meat packers were releasing to the AMS.
The empirical evidence suggests that mandatory price reporting did affect the informational content of grid premium and discount reports provided to the AMS by meat packers. That is, packer price reporting behavior did change as a result of MPR. Therefore, mandatory price reporting seemed to positively affect the price discovery process.
Publisher
South Dakota State University
Recommended Citation
Priebe, Joe Micheal, "The Effect of Mandatory Price Reporting on the Structure of Weekly Reported Grid Premium and Discount Prices for Fed Cattle" (2004). Electronic Theses and Dissertations. 1121.
https://openprairie.sdstate.edu/etd2/1121
Rights Statement
