COINTEGRATION TESTS AND SPATIAL PRICE LINKAGES IN REGIONAL CATTLE MARKETS

This analysis empirically evaluates spatial linkages in regional cattle markets using cointegration tests of regional price series. Several markets were not cointegrated over the 1980 through 1987 period. However, significant increases in cointegration of several regional livestock markets are observed through the 1980s. The increased cointegration parallels significant structural changes in the livestock industry. A formal analysis of market characteristics reveals that distances between markets, industry-concentration ratios, market volumes, and market types have significant influences on cointegration relationships between markets.