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The effect of the BSE outbreak in Japan on consumers' preferences

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  • Hyun J. Jin
  • Won W. Koo

Abstract

A nonparametric approach was used to test whether there was a structural change in Japanese consumers' demand for meat as a result of the BSE outbreak in the country. The axiom of revealed preference was utilised to test the stability of preferences in Japanese meat consumption. The matrix of the weak form of revealed preference (WARP) was partitioned and Kruskal--Wallis statistics were derived to evaluate whether the preference switches found are transitory or due to a structural change. Empirical results show that Japanese meat demand is currently unstable and has undergone structural change, synchronised with the BSE outbreak in Japan in mid-September 2001. Copyright 2003, Oxford University Press.

Suggested Citation

  • Hyun J. Jin & Won W. Koo, 2003. "The effect of the BSE outbreak in Japan on consumers' preferences," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(2), pages 173-192, June.
    • Handle: RePEc:oup:erevae:v:30:y:2003:i:2:p:173-192
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    Cited by:

    1. Kalogeras, Nikos & Pennings, Joost M.E. & van Ittersum, Koert, 2008. "Consumer Food Safety Risk Attitudes and Perceptions Over Time: The Case of BSE Crisis," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44156, European Association of Agricultural Economists.
    2. Sayed H. Saghaian & Leigh J. Maynard & Michael R. Reed, 2007. "The effects of E. coli 0157:H7, FMD and BSE on Japanese retail beef prices: A historical decomposition," Agribusiness, John Wiley & Sons, Ltd., vol. 23(1), pages 131-147.
    3. Ding, Yulian & Veeman, Michele M. & Adamowicz, Wiktor L., 2009. "BSE and the Dynamics of Beef Consumption: Influences of Habit and Trust," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49284, Agricultural and Applied Economics Association.
    4. Aldy, Joseph E. & Viscusi, W. Kip, 2013. "Risk Regulation Lessons from Mad Cows," Foundations and Trends(R) in Microeconomics, now publishers, vol. 8(4), pages 231-313, December.
    5. Yamane, Fumihiro, 2010. "Estimation of Consumer Welfare Change from the Revision of Age Criterion for BSE Testing: Hypothetical Revealed Preference Method Using Monitoring Survey Data," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 12, pages 1-19.
    6. Satoshi Kabe & Yuichiro Kanazawa, 2014. "Estimating the Markov-switching almost ideal demand systems: a Bayesian approach," Empirical Economics, Springer, vol. 47(4), pages 1193-1220, December.
    7. Livanis, Grigorios T. & Moss, Charles B., 2005. "Price Transmission and Food Scares in the U.S. Beef Sector," Working Papers 15662, University of Florida, International Agricultural Trade and Policy Center.
    8. Jin, Hyun Joung, 2008. "Changes in South Korean consumers' preferences for meat," Food Policy, Elsevier, vol. 33(1), pages 74-84, February.
    9. Yeboah, Godfred & Maynard, Leigh J., 2004. "The Impact Of Bse, Fmd, And U.S. Export Promotion Expenditures On Japanese Meat Demand," 2004 Annual meeting, August 1-4, Denver, CO 19978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Andreas Tsakiridis & Michael Wallace & James Breen & Cathal O'Donoghue & Kevin Hanrahan, 2021. "Beef quality assurance schemes: Can they improve farm economic performance?," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 451-471, July.
    11. Moonsoo Park & Yanhong H. Jin & David A. Bessler, 2008. "The impacts of animal disease crises on the Korean meat market," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 183-195, September.
    12. Xueqin Zhu & Lia Wesenbeeck & Ekko Ierland, 2006. "Impacts of Novel Protein Foods on Sustainable Food Production and Consumption: Lifestyle Change and Environmental Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(1), pages 59-87, September.
    13. Hailu, Getu & Goddard, Ellen W., 2010. "The changing egg demand in Canada: do advertising and health message contents matter?," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116427, European Association of Agricultural Economists.
    14. Jin, Hyun Joung & Skripnitchenko, Anatoliy & Koo, Won W., 2004. "The Effects Of The Bse Outbreak In The United States On The Beef And Cattle Industry," Special Reports 23072, North Dakota State University, Center for Agricultural Policy and Trade Studies.
    15. Hyun Joung Jin & Jang-Chul Kim, 2008. "The effects of the BSE outbreak on the security values of US agribusiness and food processing firms," Applied Economics, Taylor & Francis Journals, vol. 40(3), pages 357-372.
    16. Zhu, Xueqin & van Ierland, Ekko C., 2005. "A model for consumers' preferences for Novel Protein Foods and environmental quality," Economic Modelling, Elsevier, vol. 22(4), pages 720-744, July.
    17. Federico Echenique & Sangmok Lee & Matthew Shum, 2011. "The Money Pump as a Measure of Revealed Preference Violations," Journal of Political Economy, University of Chicago Press, vol. 119(6), pages 1201-1223.
    18. Hyun J. Jin, 2021. "Driving factors behind consumers' severe response to U.S. beef imports during the candlelight protest in South Korea," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 438-448, April.
    19. Filipski, Mateusz & Jin, Ling & Zhang, Xiaobo & Chen, Kevin Z., 2019. "Living like there’s no tomorrow: The psychological effects of an earthquake on savings and spending behavior," European Economic Review, Elsevier, vol. 116(C), pages 107-128.

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