Meat supply response: a cointegration analysis for the greek livestock sector

Abstract

This paper examines the impact of input and output prices in the process of enterprising decisionmaking
for meat production in Greece by means of econometric modelling. For estimating supply
elasticites, econometric methods are used, namely a 'naive' expectations model form. Cointegration
analysis is used for investigating the actuality of a long-run relationship between the variables of interest.
The statistical results show that the estimated supply models possess desirable statistical properties and
the estimated supply elasticities are credible. The estimated elasticities are consistent with a priori expectations
and are superior to other estimates because proper procedures have been used (cointegration tests
have established the existence of long-run relationships).