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The Economic Value Of Public Relations Expenditures: Food Safety And The Strawberry Case

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Author Info

  • Richards, Timothy J.
  • Patterson, Paul M.

Abstract

Food safety has become an important issue affecting public health and grower profits. Outbreaks of foodborne illnesses are typically accompanied by press accounts of the incident and a decrease in demand. This study estimates the short- and long-run impacts of adverse and positive information delivered through print media on strawberry grower profits. Positive information may arise as apart of the promotional efforts of grower associations. It is found that adverse information reduces grower profits, but that positive information can partially offset their effects. It is suggested that grower groups could redirect funds used for promotion to food safety initiatives.

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File URL: http://purl.umn.edu/30804
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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 24 (1999)
Issue (Month): 02 (December)
Pages:

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Handle: RePEc:ags:jlaare:30804

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Web page: http://waeaonline.org/
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Related research

Keywords: Food Consumption/Nutrition/Food Safety;

References

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  1. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  2. Chalfant, James A, 1987. "A Globally Flexible, Almost Ideal Demand System," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(2), pages 233-42, April.
  3. Hausman, Jerry A., 1983. "Specification and estimation of simultaneous equation models," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 1, chapter 7, pages 391-448 Elsevier.
  4. Timothy J. Richards, 1999. "Dynamic Model of Fresh Fruit Promotion: A Household Production Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 195-211.
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Citations

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Cited by:
  1. Arnade, Carlos A. & Calvin, Linda & Kuchler, Fred, 2008. "Market Response to a Food Safety Shock: The 2006 Foodborne Illness Outbreak of E. coli O157:H7 Linked to Spinach," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6448, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Malaga, Jaime E. & Williams, Gary W., 2006. "Mexican Agricultural and Food Export Competitiveness," Reports 90778, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
  3. Carlos Arnade & Fred Kuchler & Linda Calvin, 2013. "Consumers’ Response When Regulators Are Uncertain About the Source of Foodborne Illness," Journal of Consumer Policy, Springer, vol. 36(1), pages 17-36, March.
  4. Pozo, Veronica F. & Schroeder, Ted C., 2013. "Effects of Meat Recalls on Firms' Stock Prices," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151287, Agricultural and Applied Economics Association.
  5. Woods, Mollie & Thornsbury, Suzanne & Raper, Kellie Curry & Weldon, Richard N. & Wysocki, Allen F., 2003. "Food Safety And Fresh Strawberry Markets," Staff Papers 11712, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  6. Tiwari, Ashutosh & Richards, Timothy J., 2013. "Anonymous Social Networks versus Peer Networks in Restaurant Choice," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150467, Agricultural and Applied Economics Association.
  7. Sarigul, Sercan & Rui, Huaxia, 2014. "Nowcasting Obesity in the U.S. Using Google Search Volume Data," 2014 AAEA/EAAE/CAES Joint Symposium: Social Networks, Social Media and the Economics of Food, May 29-30, 2014, Montreal, Canada 166113, Agricultural and Applied Economics Association & Canadian Agricultural Economics Society & European Association of Agricultural Economists.
  8. Thomsen, Michael R. & Shiptsova, Rimma & Hamm, Sandra J., 2004. "Sales Responses To Recalls For Listeria Monocytogenes: Evidence From Branded Ready-To-Eat Meats," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34602, Southern Agricultural Economics Association.
  9. Carpio, Carlos E. & Wohlgenant, Michael K., 2006. "A Structural Econometric Model of Consumer Demand at Pick-Your-Own Fruit Operations," 2006 Annual meeting, July 23-26, Long Beach, CA 21372, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Richards, Timothy J. & Tiwari, Ashutosh, 2014. "Social Networks and Restaurant Choice," 2014 AAEA/EAAE/CAES Joint Symposium: Social Networks, Social Media and the Economics of Food, May 29-30, 2014, Montreal, Canada 166112, Agricultural and Applied Economics Association & Canadian Agricultural Economics Society & European Association of Agricultural Economists.
  11. Padilla, Luis & Acharya, Ram N., 2000. "Effects Of Health Information On Fruit And Vegetable Consumption," 2000 Annual meeting, July 30-August 2, Tampa, FL 21742, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  12. Fred A. Yamoah & David E. Yawson, 2014. "Assessing Supermarket Food Shopper Reaction to Horsemeat Scandal in the UK," International Review of Management and Marketing, Econjournals, vol. 4(2), pages 98-107.

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