摘要：This paper investigates the response of beef cattle producers to changes in the priceof cattle. Previous research has suggested that there may be a negative short-run supplyresponse to a permanent increase in the price of cattle. We build a dynamic, rationalexpectations model that predicts that the supply response is generally positive, evenfor permanent shocks in the short run, and nests the negative supply response as aspecial case for appropriately restricted demand shocks. Using annual US time seriesdata (1930-1997) and a simultaneous-equations econometric approach, we …nd a positiveshort-run supply response in the cow market and mixed evidence in the heifer market.
