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Consumer Responses to Recent BSE Events

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Author Info

  • Pritchett, James G.
  • Johnson, Kamina K.
  • Thilmany, Dawn D.
  • Hahn, William F.

Abstract

Recent bovine spongiform encephalopathy (BSE, a.k.a. mad cow disease) discoveries in Canadian and U.S. beef cattle have garnered significant media attention, which may have changed consumers’ meat-purchasing behavior. Consumer response is hypothesized and tested within a meat demand system in which response is measured using single-period dummy variables, longer-term dummy variables, and media indices that count positive and negative meat-industry articles. Parameters are estimated using retail scanner data, and cross-species price elasticities are calculated. Results suggest that the BSE events negatively impacted ground beef and chuck roasts, while positively impacting center-cut pork chop demand. Dummy variables explained the variation in meat-budget shares better than did media indices.

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File URL: http://purl.umn.edu/43498
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Bibliographic Info

Article provided by Food Distribution Research Society in its journal Journal of Food Distribution Research.

Volume (Year): 38 (2007)
Issue (Month): 2 (July)
Pages:

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Handle: RePEc:ags:jlofdr:43498

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Web page: http://fdrs.ag.utk.edu/
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Related research

Keywords: Consumer/Household Economics;

References

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  1. Moschini, GianCarlo & Meilke, Karl D., 1989. "Modeling the Pattern of Structural Change in U.S. Meat Demand," Staff General Research Papers 11266, Iowa State University, Department of Economics.
  2. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-51, November.
  3. David G. Swartz & Ivar E. Strand, Jr., 1981. "Avoidance Costs Associated with Imperfect Information: The Case of Kepone," Land Economics, University of Wisconsin Press, vol. 57(2), pages 139-150.
  4. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  5. Nicholas E. Piggott, 2003. "The Nested PIGLOG Model: An Application to U.S. Food Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 1-15.
  6. Peng, Yanning & McCann-Hiltz, Diane & Goddard, Ellen W., 2004. "Consumer Demand For Meat In Alberta, Canada: Impact Of Bse," 2004 Annual meeting, August 1-4, Denver, CO 20331, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Lewbel, Arthur, 1985. "A Unified Approach to Incorporating Demographic or Other Effects into Demand Systems," Review of Economic Studies, Wiley Blackwell, vol. 52(1), pages 1-18, January.
  8. Bollino, Carlo Andrea, 1987. "Gaids: a generalised version of the almost ideal demand system," Economics Letters, Elsevier, vol. 23(2), pages 199-202.
  9. Nicholas E. Piggott & Thomas L. Marsh, 2004. "Does Food Safety Information Impact U.S. Meat Demand?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 154-174.
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Citations

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Cited by:
  1. Maynard, Leigh J. & Wang, Xin, 2009. "Context-Dependent BSE Impacts on Canadian Food-at-Home Beef Purchases," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 48431, Agricultural and Applied Economics Association.
  2. Bakhtavoryan, Rafael & Capps, Oral, Jr. & Salin, Victoria, 2012. "Impact Of Food Contamination On Brands: A Demand Systems Estimation Of Peanut Butter," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123755, Agricultural and Applied Economics Association.

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