Examining long-run relationships between Australian beef prices

Cointegration and impulse response analyses are used to investigate the sho rt-run and long-run dynamics of the Australian beef market. The aim of this study is to determine whether long-run relationships existed between Austr alian beef prices at the farm, wholesale and retail levels. Based on monthl y data from 1971 to 1994, the results show that all three prices considered are cointegrated. Furthermore, the wholesale price is found to be weakly e xogenous. The latter result might be an indication of market inefficiency d ue in part to price levelling often practised in the beef marketing system.