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Food Safety Information And Meat Demand In Spain

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  • Radwan, Amr
  • Gil, Jose Maria
  • Ben Kaabia, Monia
  • Serra, Teresa
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    Abstract

    This paper analyses the impact of food safety information about the “mad-cow” crisis on the demand for different types of fresh meat and fish in Spain. The theoretical model explicitly incorporates food safety information in the consumers’ utility function, from which demand equations are obtained. Two alternative functional forms have been considered, the standard AIDS and the Generalized Almost ideal Demand System (GAIDS) in order to overcome the problem of incorporating demand shifters in the traditional AIDS model. The food safety information has been incorporated into the demand function through a weighted information index built on the basis of the published news related to the mad-cow disease in the most popular Spanish newspaper. The comparison of elasticities from both models suggests that GAIDS elasticities are more consistent with the characteristics of meat and fish markets in Spain. Moreover, mass media information on BSE has had a statistically significant but small effect on the consumption of the different meat products in Spain.

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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51540.

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    Date of creation: 2009
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    Handle: RePEc:ags:iaae09:51540

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    Related research

    Keywords: meat consumption; food safety information; BSE; demand systems; GAIDS; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Q11; C32; D12;

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    1. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, vol. 25(2-3), pages 359-374, September.
    2. 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.
    3. Tansel, A., 1992. "Cigarette Demand, Health Scares and Education in Turkey," Papers 660, Yale - Economic Growth Center.
    4. Bollino, Carlo Andrea, 1987. "Gaids: a generalised version of the almost ideal demand system," Economics Letters, Elsevier, vol. 23(2), pages 199-202.
    5. Mario Mazzocchi, 2006. "No News Is Good News: Stochastic Parameters versus Media Coverage Indices in Demand Models after Food Scares," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 727-741.
    6. Ana María Angulo & José María Gil, 2006. "Incorporating nutrients into meat demand analysis using household budgets data," Agricultural Economics, International Association of Agricultural Economists, vol. 35(2), pages 131-144, 09.
    7. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
    8. Hayes, Dermot J. & Wahl, Thomas I. & Williams, Gary W., 1990. "Testing Restrictions on a Model of Japanese Meat Demand," Staff General Research Papers 10940, Iowa State University, Department of Economics.
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