Pork cycle

It was first observed in 1925 in pig markets in the US by Mordecai Ezekiel and in Europe in 1927 by the German scholar Arthur Hanau [de].

[2] While the pork cycle is so named for its genesis in the economic analysis of livestock; the phenomenon has far-spanning implications that capture most goods.

The model has also been applied in certain labour sectors: high salaries in a particular sector lead to an increased number of students studying the relevant subject; when these students enter the job market at the same time after several years of studying, their job prospects and salaries are much worse due to the new surplus of applicants.

This in turn deters students from studying this subject, producing a deficiency and higher wages once again.

Sherwin Rosen, Kevin M. Murphy, and José Scheinkman (1994) proposed an alternative model in which cattle ranchers have perfectly rational expectations about future prices.