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

Published online by Cambridge University Press:  28 April 2015

Henry W. Kinnucan
Henry W. Kinnucan*
Affiliation:
Department of Agricultural Economics and Rural Sociology, Auburn University, AL
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Abstract

A recent study by Miljkovic, Marsh, and Brester estimates that reductions in the Japanese tariff-rate quota between 1993 and 2001 increased U.S. beef prices by $1.03 per cwt and yen depreciation between 1995 and 1998 reduced U.S. hog prices by $0.99 per cwt. Relaxing the assumption that U.S. beef and hog supplies are fixed cuts the total elasticities underlying these estimates by 50% or more. The upshot is that shocks in the Japanese market have little effect on U.S. beef and pork prices. Hence, producers may be better off focusing on domestic issues such as dietary concerns over red meat consumption.

Keywords

elasticitiesexchange ratesimport demandincomesupply responsetariffsQ17F14C32
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 1 , April 2004 , pp. 251 - 255
Copyright
Copyright © Southern Agricultural Economics Association 2004

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