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Modeling The Impact Of Food Safety Information On Meat Demand In Spain

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

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.

Suggested Citation

  • Radwan, Amr & Gil, Jose Maria & Ben Kaabia, Monia & Serra, Teresa, 2008. "Modeling The Impact Of Food Safety Information On Meat Demand In Spain," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6672, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa107:6672
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    File URL: http://purl.umn.edu/6672
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    References listed on IDEAS

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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.
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    4. 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.
    5. Smith, Mark E. & van Ravenswaay, Eileen O. & Thompson, Stanley R., 1987. "Sales Loss Determination in Food Contamination Incidents: An Application to Milk Bans in Hawaii," Working Papers 115803, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    6. Mazzocchi, Mario & Stefani, Gianluca, 2002. "Consumer Welfare and the Loss Induced by Withheld Information: The Case of BSE in Italy," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24927, European Association of Agricultural Economists.
    7. 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.
    8. Dermot J. Hayes & Thomas I. Wahl & Gary W. Williams, 1990. "Testing Restrictions on a Model of Japanese Meat Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 556-566.
    9. Bollino, Carlo Andrea, 1987. "Gaids: a generalised version of the almost ideal demand system," Economics Letters, Elsevier, vol. 23(2), pages 199-202.
    10. Alston, Julian M. & Chalfant, James A. & Piggott, Nicholas E., 2001. "Incorporating demand shifters in the Almost Ideal demand system," Economics Letters, Elsevier, vol. 70(1), pages 73-78, January.
    11. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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    Cited by:

    1. Kosse, Anneke, 2013. "Do newspaper articles on card fraud affect debit card usage?," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 5382-5391.

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