Supply and demand shocks reshape US beef prices in surprising ways.
The study looked at how supply and demand shocks affect beef prices in the US. They used a special model to separate these shocks and found that both have significant impacts on prices. Supply shocks have a stronger effect than expected, showing that market limitations play a role. Demand shocks have a more stable impact but change direction after about 9 months. This suggests that different cuts of beef have varying demand levels and fixed supply proportions, influenced by livestock production constraints.