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Traceability, Moral Hazard, and Food Safety

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Author Info
Starbird, S.A.
Amanor-Boadu, V.
Roberts, T.
Abstract

Errors in traceability can significantly impact the moral hazard associated with producing safe food. The effect of moral hazard depends on the proportion of unsafe food costs that can be allocated to the responsible producer, which depends on the efficiency of the traceability system. In this paper, we develop a model that identifies the minimum level of traceability needed to mitigate moral hazard and motivate suppliers to produce safe food. Regulators and consumer can use the results of this research to design regulations and contracts that mitigate moral hazard and motivate producers to deliver safe food.

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File URL: http://purl.umn.edu/43840
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Publisher Info
Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 43840.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:43840

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Related research
Keywords: Food safety; traceability; moral hazard; 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. Grossman, Richard S, 1992. "Deposit Insurance, Regulation, and Moral Hazard in the Thrift Industry: Evidence from the 1930's," American Economic Review, American Economic Association, vol. 82(4), pages 800-821, September. [Downloadable!] (restricted)
  2. Frenzen, Paul D. & Buzby, Jean C. & Rasco, Barbara, 2001. "Product Liability And Microbial Foodborne Illness," Agricultural Economics Reports 34059, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  3. 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!]
  4. Neil Doherty & Kent Smetters, 2002. "Moral Hazard in Reinsurance Markets," NBER Working Papers 9050, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-26.

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