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Ex Ante Evaluation of the Economic Impacts of Growth Promotants in the U.S. Livestock and Meat Sector
Author(s) -
Buhr Brian L.,
Hayenga Marvin L.
Publication year - 1994
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349460
Subject(s) - livestock , ex ante , agricultural economics , business , economics , natural resource economics , economic impact analysis , international trade , geography , macroeconomics , forestry , microeconomics
of animal growth‐enhancing technologies will have significant economic impacts on the U.S. livestock sector. Products analyzed include somatotropins and β‐agonists in both beef and pork. Economic impacts on the beef, pork, and poultry sectors are estimated using a quarterly econometric simulation model of the U.S. livestock sector. The model allows for: (1) dynamic interaction of the competing meat animal industries as growth‐enhancing products become available in each industry; and (2) comprehensive accounting of the cross‐commodity effects of the technology changes. Results show that initial adopters are likely to obtain some benefits, but industry profits return to “normal” in the longer run.