Canada's Broiler Supply Management Program: A Shield From U.S. Price Volatility
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Canadian broiler price responses to increases in US prices either have lessened in magnitude and duration or have been eliminated since Canada's broiler supply management program began in 1979. The authors used monthly vector autoregressions of US and Canadian broiler prices (farm and retail), estimated for periods before and after Canada introduced its broiler supply management program, to arrive at the results. The analysis also demonstrated that data-oriented, tune-series statistical methods are useful in policy analysis when focusing on a policy's dynamic aspects, contrary to the opinion of some researchers.