MULTIVARIATE REGRESSION ANALYSIS AND SLAUGHTER LIVESTOCK

Throughout its history, the econometric analysis of slaughter livestock has been characterized by diversity of opinion on numerous fundamental issues. The issues include the relationships between slaughter weight and prices, changes in consumer preference for meat, the interdependence of slaughter livestock prices (such as hog, fed cattle, and nonfed cattle prices), the interdependence of prices and storage stocks, and seasonality. The resolution of these issues is discussed in this paper. New techniques are proposed, and regression models based on these techniques are given. The regression equations were used to make monthly predictions for a two-year period beyond the period of the data base for the equations. Conclusions are reached on the economic issues in question.