Food Safety and Spinach Demand: A Generalized Error Correction Model
AbstractWe estimate an error correction model representing demand for leafy green vegetables but generalize the structure to allow for adjustment to one conspicuous shock. We investigate whether the adjustment rate to the U.S. Food and Drug Administrationâ€™s (FDA) 2006 warning that fresh spinach was contaminated with deadly bacteria was distinct from the overall adjustment rate. Our model allows consumers to correct both for past errors and for any errors in their reaction to the shock. This method yields an estimate of the adjustment rate to the policy shock and points to an improved estimate of the duration of policy impacts.
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Bibliographic InfoArticle provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.
Volume (Year): 40 (2011)
Issue (Month): 2 (August)
error correction model; adjustment rates; AIDS demand model; retail food demand; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Health Economics and Policy;
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