Phase Space Reconstruction and Nonlinear Equilibrium Dynamics in the United States Beef Market

This paper investigates dynamic interactions in the US beef market using phase space reconstruction, which has been developed to analyze nonlinear dynamical systems. This approach provides important and unique empirical insights into consumers behavior in the beef market. Our results from a phase space reconstruction analysis demonstrate distinct differences between intertemporal short run impacts from food safety outbreaks (e.g., E. Coli) and longer run health effects (e.g., cholesterol). Adjustments due to factors such as cholesterol are permanent changes and do not affect the manner by which people consume, while consumers react to food safety scares by adjusting consumption for a short period of time and then returning to their normal steady state cycle of consumption.