EFFECT OF RISK AVERSION ON FEEDER CATTLE PRICES

This paper determines the effects of cattle feeders' risk aversion on feeder cattle prices using pen data of Kansas feedlots. Higher profit risk results in lower feeder cattle prices. The elasticity of feeder cattle price with respect to profit risk was small (-0.013). The risk elasticity estimated here is similar to risk elasticities in previous studies and thus, the use of pen-level data does not seem to add much to the study of risk.

MoreLess

Year of publication:	1994
Authors:	Lee, Jung-Hee ; Brorsen, B. Wade
Published in:	Journal of Agricultural and Applied Economics. - Southern Agricultural Economics Association - SAEA. - Vol. 26.1994, 02
Publisher:	Southern Agricultural Economics Association - SAEA
Subject:	Feedlot pen data \| Price expectations \| Hedonic price \| Price risk \| Risk aversion \| Demand and Price Analysis \| Livestock Production/Industries

More details

Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005469217