Causal flow analyses combined with time series analyses are used to examine price relationships among fresh broiler retail markets (Northeast, South, Midwest, and West). Results indicate structural changes have occurred in this industry. Reasons for changes in price relationships include the perishable nature of fresh broilers, along with vertical integration and increases in production and concentration in the industry. The four markets are integrated, but the level of integration has decreased over time. With the markets becoming more exogenous, there may be a decrease in society’s welfare. The South market is the most important market for price discovery.

In this paper, we present an econometric analysis of the effects of a price floor on price dynamics and price volatility. A price floor (implemented as a part of government pricing policy) provides a censoring mechanism for price determination. We specify and estimate a dynamic Tobit model under time-varying volatility. The model is applied to analyze the effects of a price support program on price dynamics and price volatility in the U.S. American cheese market. The econometric analysis provides useful insights on price dynamics in the presence of a government-determined price floor.