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Effects of Japanese Import Demand on U.S. Livestock Prices: Reply

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  • Miljkovic, Dragan
  • Marsh, John M.
  • Brester, Gary W.

Abstract

In responding to a comment article, we concur that quantifying U.S. livestock price response to changing Japanese met import demand requires nonzero supply elasticities beyond one quarter. However, rigidities in market trade and empirical tests justify the inclusion of exchange rates in the short-run analysis. Producer welfare asymptotically approaches zero for increasing supply elasticities in the long run, but short-run transitions in producer surplus are meaningful to producers.

Suggested Citation

  • Miljkovic, Dragan & Marsh, John M. & Brester, Gary W., 2004. "Effects of Japanese Import Demand on U.S. Livestock Prices: Reply," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(01), pages 1-4, April.
    • Handle: RePEc:ags:joaaec:42940
    DOI: 10.22004/ag.econ.42940
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    References listed on IDEAS

    as
    1. Dragan Miljkovic, 1999. "The Law of One Price in International Trade: A Critical Review," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(1), pages 126-139.
    2. Christopher B. Barrett, 2001. "Measuring Integration and Efficiency in International Agricultural Markets," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 23(1), pages 19-32.
    3. Miljkovic, Dragan & Marsh, John M. & Brester, Gary W., 2002. "Japanese Import Demand for U.S. Beef and Pork: Effects on U.S. Red Meat Exports and Livestock Prices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(3), pages 501-512, December.
    4. Kenneth Rogoff, 1996. "The Purchasing Power Parity Puzzle," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 647-668, June.
    5. repec:ags:joaaec:v:34:y:2002:i:3:p:501-513 is not listed on IDEAS
    6. repec:jaa:jagape:v:34:y:2002:i:3:p:501-513 is not listed on IDEAS
    7. Cushman, David O., 1983. "The effects of real exchange rate risk on international trade," Journal of International Economics, Elsevier, vol. 15(1-2), pages 45-63, August.
    8. Kinnucan, Henry W., 2004. "Effects of Japanese Import Demand on U.S. Livestock Prices: Comment," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(01), pages 1-5, April.
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    More about this item

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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