Phase Space Reconstruction and Nonlinear Equilibrium Dynamics Applied to U.s. Meat Demand

We investigate dynamic interactions of market driven consumer behavior using phase space reconstruction, which has been developed to analyze nonlinear dynamical systems. This approach provides important and unique empirical insights into U.S. beef demand. Results from the phase space reconstruction analysis demonstrate distinct differences between intertemporal shorter run impacts from food safety outbreaks (e.g., E. Coli) relative to longer run health effects (e.g., cholesterol). Demand adjustments due to cholesterol reflect permanent changes, while consumers react to food safety scares by adjusting consumption for a short period of time and then return to their normal seasonal patterns and levels of consumption.