Analyzing different aspects of the supply chain aids in understanding how firms
behave, interact and respond within an industry. Some concepts used to carry out this
analysis include asymmetric price transmission, event study methodology and event
costing analysis. Each of these topics is discussed in this dissertation, presented as a set
of three separate papers.
The first paper analyzes asymmetric price transmission and elasticities of price
transmission at the farm-retail level for whole and two percent milk in selected cities in
the United States. The theoretical core of this paper relies on a comparison between the
traditional Houck approach and the error correction model proposed by von Cramon-
Taubadel and Fahlbusch. We reject the null hypothesis of symmetry for each product
and city under both approaches. We also find little evidence of statistical superiority
between the classic Houck approach and the error correction model.
The second paper uses financial market event study methodology to calculate the
economic impact on the supply chain related to one of the worst disease outbreaks in the
food industry in the United States. This event began on November 3, 2003, when the Associated Press reported a hepatitis advisory in the Beaver Valley, Pennsylvania. This
outbreak directly involved two publicly traded companies: Prandium and Sysco. The
market model is used as the main foundation of the economic analysis. There is no
evidence of abnormal rates of return or spillover effects in relation to the outbreak.
However, there is evidence that volatility of returns increases after the event.
The third paper develops a general conceptual economic module to quantify the
impact of an animal disease outbreak. This study develops a generic economic module,
which estimates cost in the face of a simulated animal disease outbreak under different
mitigation strategies. This model was subsequently applied in a case study: a
hypothetical case of a foot-and-mouth (FMD) outbreak in the Texas Panhandle analyzed
under five different ex-post mitigation strategies. The results show that the most
effective strategy is to slaughter and not to vaccinate.
We conclude that analyzing the supply chain is important in understanding how
markets behave.
| Identifer | oai:union.ndltd.org:tamu.edu/oai:repository.tamu.edu:1969.1/ETD-TAMU-1715 |
| Date | 02 June 2009 |
| Creators | Sherwell Cabello, Pablo |
| Contributors | Capps, Oral, Salin, Victoria |
| Source Sets | Texas A and M University |
| Language | en_US |
| Detected Language | English |
| Type | Book, Thesis, Electronic Dissertation, text |
| Format | electronic, application/pdf, born digital |
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