The Informativeness of the Technical Conversion Factor for the Price Ratio of Processing Livestock
The technical conversion factor (TCF) is a survey-based estimate of the percentage of carcass weight obtained per unit of live weight. Practitioners and researchers have used it to predict the corresponding price ratio (PR). We use both in-sample regressions and out-of-sample forecasting analysis to...
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| Format: | Article |
| Language: | English |
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Czech Statistical Office
2019-06-01
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| Series: | Statistika: Statistics and Economy Journal |
| Subjects: | |
| Online Access: | https://www.czso.cz/documents/10180/88506448/32019719q2_163_boudt_analyses.pdf/81840af1-f8f2-4a70-9b37-fa915909d90c?version=1.0 |
| _version_ | 1811269825991802880 |
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| author | Kris Boudt Hong Anh Luu |
| author_facet | Kris Boudt Hong Anh Luu |
| author_sort | Kris Boudt |
| collection | DOAJ |
| description | The technical conversion factor (TCF) is a survey-based estimate of the percentage of carcass weight obtained per unit of live weight. Practitioners and researchers have used it to predict the corresponding price ratio (PR). We use both in-sample regressions and out-of-sample forecasting analysis to test the validity of this approach in case of predicting the price effects of processing livestock in Europe. By regressing the PR on the inverse value of the corresponding TCF for a large panel of European countries and animal types, we find a significant positive relation between these variables, which also has economic value in terms of improving out-of-sample forecasting precision. This result is shown to be robust to animal type, year, and country fixed effects. The TCF therefore has predictive value about the corresponding PR. |
| first_indexed | 2024-04-12T21:50:05Z |
| format | Article |
| id | doaj.art-bcd4979c39904d8092b62017ec26c596 |
| institution | Directory Open Access Journal |
| issn | 0322-788X 1804-8765 |
| language | English |
| last_indexed | 2024-04-12T21:50:05Z |
| publishDate | 2019-06-01 |
| publisher | Czech Statistical Office |
| record_format | Article |
| series | Statistika: Statistics and Economy Journal |
| spelling | doaj.art-bcd4979c39904d8092b62017ec26c5962022-12-22T03:15:31ZengCzech Statistical OfficeStatistika: Statistics and Economy Journal0322-788X1804-87652019-06-01992163175The Informativeness of the Technical Conversion Factor for the Price Ratio of Processing LivestockKris Boudt0Hong Anh Luu1Solvay Business School, Vrije Universiteit Brussel, Brussels, BelgiumSolvay Business School, Vrije Universiteit Brussel, Brussels, BelgiumThe technical conversion factor (TCF) is a survey-based estimate of the percentage of carcass weight obtained per unit of live weight. Practitioners and researchers have used it to predict the corresponding price ratio (PR). We use both in-sample regressions and out-of-sample forecasting analysis to test the validity of this approach in case of predicting the price effects of processing livestock in Europe. By regressing the PR on the inverse value of the corresponding TCF for a large panel of European countries and animal types, we find a significant positive relation between these variables, which also has economic value in terms of improving out-of-sample forecasting precision. This result is shown to be robust to animal type, year, and country fixed effects. The TCF therefore has predictive value about the corresponding PR.https://www.czso.cz/documents/10180/88506448/32019719q2_163_boudt_analyses.pdf/81840af1-f8f2-4a70-9b37-fa915909d90c?version=1.0Agriculturecarcass weightlive weightproducer pricepass-through effect |
| spellingShingle | Kris Boudt Hong Anh Luu The Informativeness of the Technical Conversion Factor for the Price Ratio of Processing Livestock Statistika: Statistics and Economy Journal Agriculture carcass weight live weight producer price pass-through effect |
| title | The Informativeness of the Technical Conversion Factor for the Price Ratio of Processing Livestock |
| title_full | The Informativeness of the Technical Conversion Factor for the Price Ratio of Processing Livestock |
| title_fullStr | The Informativeness of the Technical Conversion Factor for the Price Ratio of Processing Livestock |
| title_full_unstemmed | The Informativeness of the Technical Conversion Factor for the Price Ratio of Processing Livestock |
| title_short | The Informativeness of the Technical Conversion Factor for the Price Ratio of Processing Livestock |
| title_sort | informativeness of the technical conversion factor for the price ratio of processing livestock |
| topic | Agriculture carcass weight live weight producer price pass-through effect |
| url | https://www.czso.cz/documents/10180/88506448/32019719q2_163_boudt_analyses.pdf/81840af1-f8f2-4a70-9b37-fa915909d90c?version=1.0 |
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