Imported and Domestic Beef: Are They Substitutes or Complements?
2015
Dhoubhadel, Sunil P. | Azzam, Azzeddine M. | Stockton, Matthew C.
This paper uses a translog processing cost function to test whether imported beef and domestic beef are substitutes or complements. Findings suggest that imported beef and domestic beef are substitutes, thus giving grounds to the claim by U.S. cattle producers that beef imports decrease the use of domestic beef. The effect of a price decline of beef imports has more pronounced effect on the use of cull cow beef than carcass beef, with the latter dropping by more than three times the former during the sample period.
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