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New Evidence on Information Disclosure through Restaurant Hygiene Grading

Author

Listed:
  • Daniel E. Ho
  • Zoe C. Ashwood
  • Cassandra Handan-Nader

Abstract

The case of restaurant hygiene grading occupies a central role in information disclosure scholarship. Comparing Los Angeles, which enacted grading in 1998, with California from 1995–1999, Jin and Leslie (2003) found that grading reduced foodborne illness hospitalizations by 20 percent. Expanding hospitalization data and collecting new data on mandatorily reported illnesses, we show that this finding does not hold up under improvements to the original data and methodology. The largest salmonella outbreak in state history hit Southern California before Los Angeles implemented grading. Placebo tests detect the same treatment effects for Southern California counties, none of which changed restaurant grading.

Suggested Citation

  • Daniel E. Ho & Zoe C. Ashwood & Cassandra Handan-Nader, 2019. "New Evidence on Information Disclosure through Restaurant Hygiene Grading," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 404-428, November.
    • Handle: RePEc:aea:aejpol:v:11:y:2019:i:4:p:404-28
    Note: DOI: 10.1257/pol.20180230
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Williamson David & Pugh Geoff & Akinbote Mayowa, 2024. "A Compliance Return Method to Evaluate Different Approaches to Implementing Regulations: The Example of Food Hygiene Standards," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-24.
    2. Chen, Simiao & Jin, Zhangfeng & Bärnighausen, Till & Bloom, David E., 2025. "Did early diagnostic confirmation save lives during the COVID-19 pandemic? Evidence from China," China Economic Review, Elsevier, vol. 93(C).
    3. Xiaoqing Wan & Nichole R. Lighthall, 2022. "Disclosure of Investment Advisor and Broker-Dealer Relationships: Impact on Comprehension and Decision Making," Papers 2206.00117, arXiv.org, revised Jun 2022.
    4. Tandel, Vaidehi & Gandhi, Sahil & Nanda, Anupam & Agnihotri, Nandini, 2025. "Do mandatory disclosures squeeze the lemons? The case of housing markets in India," Journal of Public Economics, Elsevier, vol. 247(C).
    5. Kamila Cygan‐Rehm, 2022. "Are there no wage returns to compulsory schooling in Germany? A reassessment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(1), pages 218-223, January.
    6. Cassandra Handan-Nader & Daniel E. Ho & Becky Elias, 2020. "Feasible Policy Evaluation by Design: A Randomized Synthetic Stepped-Wedge Trial of Mandated Disclosure in King County," Evaluation Review, , vol. 44(1), pages 3-50, February.
    7. Erica Myers & Steven L. Puller & Jeremy D. West, 2019. "Effects of Mandatory Energy Efficiency Disclosure in Housing Markets," NBER Working Papers 26436, National Bureau of Economic Research, Inc.
    8. Erica Myers & Steven L. Puller & Jeremy West, 2022. "Mandatory Energy Efficiency Disclosure in Housing Markets," American Economic Journal: Economic Policy, American Economic Association, vol. 14(4), pages 453-487, November.
    9. Kovács, Balázs & Lehman, David W. & Carroll, Glenn R., 2020. "Grade inflation in restaurant hygiene inspections: Repeated interactions between inspectors and restaurateurs," Food Policy, Elsevier, vol. 97(C).
    10. Andrea La Nauze & Erica Myers, 2023. "Do Consumers Acquire Information Optimally? Experimental Evidence from Energy Efficiency," NBER Working Papers 31742, National Bureau of Economic Research, Inc.
    11. Yoshimoto, Hisayuki & Zapechelnyuk, Andriy, 2024. "Are there “Ratatouille” restaurants? On anticorrelation of food quality and hygiene," The Quarterly Review of Economics and Finance, Elsevier, vol. 98(C).

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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy

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    1. New Evidence on Information Disclosure through Restaurant Hygiene Grading (American Economic Journal: Economic Policy 2019) in ReplicationWiki

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