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Firms, Incentives, And The Supply Of Food Safety: A Formal Model Of Government Enforcement

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Author Info
Goldsmith, Peter
Turan, Nesve A.
Gow, Hamish

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Abstract

Recent instances of significant food safety breeches in both meat and biotechnology challenge traditional safety efforts. A formal model utilizing agency theory is used to explore the power relationships between the regulator and the firm. Fundamental issues effecting firms’' supply of safety are demonstrated and alternative corrective mechanisms are discussed.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 20343.

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Date of creation: 2004
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Handle: RePEc:ags:aaea04:20343

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Related research
Keywords: Food Consumption/Nutrition/Food Safety;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Antle, John M., 1999. "Benefits and costs of food safety regulation," Food Policy, Elsevier, vol. 24(6), pages 605-623, December. [Downloadable!] (restricted)
  2. Henrik Vetter & Kostas Karantininis, 2002. "Moral hazard, vertical integration, and public monitoring in credence goods," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 29(2), pages 271-279, June.
  3. Rigoberto Lopez & Azzeddine Azzam & Carmen Lirón-España, 2002. "Market Power and/or Efficiency: A Structural Approach," Review of Industrial Organization, Springer, vol. 20(2), pages 115-126, March. [Downloadable!] (restricted)
  4. Unnevehr, Laurian & Jensen, Helen H., 1999. "Economic Implications of Using HACCP as a Food Safety Regulatory Standard (The)," Staff General Research Papers 1631, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  5. Laffont, Jean-Jacques, 1994. "The New Economics of Regulation Ten Years After," Econometrica, Econometric Society, vol. 62(3), pages 507-37, May. [Downloadable!] (restricted)
    Other versions:
  6. Henson, Spencer & Heasman, Michael, 1998. "Food safety regulation and the firm: understanding the compliance process1," Food Policy, Elsevier, vol. 23(1), pages 9-23, February. [Downloadable!] (restricted)
  7. Henson, Spencer & Caswell, Julie, 1999. "Food safety regulation: an overview of contemporary issues," Food Policy, Elsevier, vol. 24(6), pages 589-603, December. [Downloadable!] (restricted)
  8. Sherstyuk, Katerina, 2000. " Performance Standards and Incentive Pay in Agency Contracts," Scandinavian Journal of Economics, Blackwell Publishing, vol. 102(4), pages 725-36, December. [Downloadable!] (restricted)
  9. Laurian J. Unnevehr & Helen H. Jensen, 2001. "Industry Compliance Costs: What Would They Look Like in a Risk-Based Integrated Food System?," Center for Agricultural and Rural Development (CARD) Publications 01-wp278, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
    Other versions:
  10. Christensen, Bryan J. & Bailey, Deevon & Hunnicutt, Lynn & Ward, Ruby, 2003. "Consumer Preferences for Public and Private Sector Certifications for Beef Products in the United States and the United Kingdom," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 6(03). [Downloadable!]
  11. Goldsmith, Peter & Turan, Nesve & Gow, Hamish, 2003. "Food Safety In The Meat Industry: A Regulatory Quagmire," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 6(01). [Downloadable!]
  12. Catherine J. Morrison Paul, 2001. "Cost Economies And Market Power: The Case Of The U.S. Meat Packing Industry," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 531-540, August. [Downloadable!] (restricted)
  13. Hennessy, David A. & Roosen, Jutta & Jensen, Helen H., 2003. "Systemic failure in the provision of safe food," Food Policy, Elsevier, vol. 28(1), pages 77-96, February. [Downloadable!] (restricted)
    Other versions:
  14. Goldsmith, Peter & Salvador, Antonio & Knipe, Dar & Kendall, Elaine, 2002. "Structural Change Or Logical Incrementalism? Turbulence In The Global Meat System," 2002 Annual meeting, July 28-31, Long Beach, CA 19704, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  15. Crutchfield, Stephen R. & Buzby, Jean C. & Roberts, Tanya & Ollinger, Michael & Lin, C.T. Jordan, 1997. "Economic Assessment of Food Safety Regulations: The New Approach to Meat and Poultry Inspection," Agricultural Economics Reports 34009, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  16. Segerson, Kathleen, 1998. "Mandatory vs. Voluntary Approaches to Food Safety," Research Reports 25188, University of Connecticut, Food Marketing Policy Center. [Downloadable!]
  17. Jewitt, Ian, 1988. "Justifying the First-Order Approach to Principal-Agent Problems," Econometrica, Econometric Society, vol. 56(5), pages 1177-90, September. [Downloadable!] (restricted)
  18. McCluskey, Jill J., 2000. "A Game Theoretic Approach To Organic Foods: An Analysis Of Asymmetric Information And Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), April. [Downloadable!]
  19. Golan, Elise & Krissoff, Barry & Kuchler, Fred & Calvin, Linda & Nelson, Kenneth & Price, Gregory, 2004. "Traceability In The U.S. Food Supply: Economic Theory And Industry Studies," Agricultural Economics Reports 33939, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  20. Ollinger, Michael & Mueller, Valerie, 2003. "Managing For Safer Food: The Economics Of Sanitation And Process Controls In Meat And Poultry Plants," Agricultural Economics Reports 33975, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  21. Peter Goldsmith & Rishi Basak, 2001. "Incentive Contracts and Environmental Performance Indicators," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(4), pages 259-279, December. [Downloadable!] (restricted)
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