|
This paper considers the hog price impacts of the foot-and-mouth disease outbreaks occurred in 2010. The recent movement of the domestic hog price revealed abnormal price deviations considering the movement of the international hog price and the trend in income. An empirical assessment of abnormal price deviations in the domestic hog price is provided using the event study. The study shows that the domestic hog price was formed far below the equilibrium level based on the long-run relationship between the domestic and international hog prices. The abnormal price deviations were found significant and persistent after the outbreaks of the foot-and-mouth disease. |
