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Impact of BSE and Bird Flu on Consumersf Meat Demand in Japan

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Author Info

  • Takashi Ishida

    (Graduate School of Economics and Business Administration, Hokkaido University)

  • Noriko Ishikawa

    (Graduate School of Science and Technology, Kobe University)

  • Mototsugu Fukushige

    ()
    (Graduate School of Economics, Osaka University)

Abstract

This paper investigates the impacts of the BSE and Bird Flu on consumersf meat demand in Japan using the Almost Ideal demand system. BSE and Bird Flu scares bring about a fall in demand for beef and chicken respectively, and an upturn in demand for pork and fishery products, both of which are substitutes for beef and chicken in Japan. We also find that a Bird Flu outbreak has a negative impact on the market share for beef, although a BSE outbreak raises consumer demand for chicken. Empirical results also show that both impacts do not persist permanently, but remain for a period that might depend on the characteristics of the disease, such as incubation period, cure rate and infection risk, and on the differences in the government response to the particular disease crises.

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Bibliographic Info

Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 06-01.

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Length: 20 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:osk:wpaper:0601

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Web page: http://www.econ.osaka-u.ac.jp/
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Keywords: BSE; Bird Flu; Almost Ideal demand system; Meat Demand;

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References

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  1. Wim Verbeke & Ronald W. Ward & Jacques Viaene, 2000. "Probit analysis of fresh meat consumption in Belgium: Exploring BSE and television communication impact," Agribusiness, John Wiley & Sons, Ltd., vol. 16(2), pages 215-234.
  2. Toru Konno & Mototsugu Fukushige, 2002. "The Canada-United States bilateral import demand functions: gradual switching in long-run relationships," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 9(9), pages 567-570.
  3. Panos Fousekis & Christos Pantzios, 2000. "Meat demand in Greece with quality decomposition," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 7(7), pages 431-434.
  4. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 25(2-3), September.
  5. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, Blackwell, vol. 25(2-3), pages 359-374, September.
  6. Ohtani, Kazuhiro & Katayama, Sei-ichi, 1986. "A gradual switching regression model with autocorrelated errors," Economics Letters, Elsevier, Elsevier, vol. 21(2), pages 169-172.
  7. Brian Gould & Hector Villarreal, 2002. "Adult equivalence scales and food expenditures: an application to Mexican beef and pork purchases," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 34(9), pages 1075-1088.
  8. John Leeming & Paul Turner, 2003. "The BSE Crisis and the Price of Red Meat in the UK," Working Papers, The University of Sheffield, Department of Economics 2003002, The University of Sheffield, Department of Economics, revised Mar 2003.
  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, Agricultural and Applied Economics Association, vol. 86(1), pages 154-174.
  10. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, American Economic Association, vol. 70(3), pages 312-26, June.
  11. Thomas Marsh & Ted Schroeder & James Mintert, 2004. "Impacts of meat product recalls on consumer demand in the USA," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(9), pages 897-909.
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Cited by:
  1. Martin Browning & Lars Gårn Hansen & Sinne Smed, 2013. "Rational inattention or rational overreaction? Consumer reactions to health news," IFRO Working Paper 2013/14, University of Copenhagen, Department of Food and Resource Economics.
  2. Hsu, Jane Lu & Liu, Kang Ernest & Lee, Hwang-Jaw & Huang, Min-Hsin & Hung, Kelsey Jing-Ru, 2010. "The Influences Of Avian Influenza, Bse, And H1n1 Influenza On Attitudinal Changes In Meat Safety Issues," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany, European Association of Agricultural Economists;Agricultural and Applied Economics Association 116405, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
  3. Liu, Kang Ernest & Huang, Min-Hsin & Hsu, Jane Lu & Lee, Hwang-Jaw, 2009. "Avian Influenza Threat and its Potential Impact on Demand for Chicken and Eggs," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin, Agricultural and Applied Economics Association 49297, Agricultural and Applied Economics Association.

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