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Impact of BSE and Bird Flu on Consumers f Meat Demand in Japan

Author

Listed:
  • 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 consumers f 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.

Suggested Citation

  • Takashi Ishida & Noriko Ishikawa & Mototsugu Fukushige, 2006. "Impact of BSE and Bird Flu on Consumers f Meat Demand in Japan," Discussion Papers in Economics and Business 06-01, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  • Handle: RePEc:osk:wpaper:0601
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    References listed on IDEAS

    as
    1. Panos Fousekis & Christos Pantzios, 2000. "Meat demand in Greece with quality decomposition," Applied Economics Letters, Taylor & Francis Journals, vol. 7(7), pages 431-434.
    2. Thomas Marsh & Ted Schroeder & James Mintert, 2004. "Impacts of meat product recalls on consumer demand in the USA," Applied Economics, Taylor & Francis Journals, vol. 36(9), pages 897-909.
    3. 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.
    4. Brian Gould & Hector Villarreal, 2002. "Adult equivalence scales and food expenditures: an application to Mexican beef and pork purchases," Applied Economics, Taylor & Francis Journals, vol. 34(9), pages 1075-1088.
    5. John Leeming & Paul Turner, 2004. "The BSE crisis and the price of red meat in the UK," Applied Economics, Taylor & Francis Journals, vol. 36(16), pages 1825-1829.
    6. 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.
    7. 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, vol. 9(9), pages 567-570.
    8. Ohtani, Kazuhiro & Katayama, Sei-ichi, 1986. "A gradual switching regression model with autocorrelated errors," Economics Letters, Elsevier, vol. 21(2), pages 169-172.
    9. 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.
    10. 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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    Citations

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    Cited by:

    1. Lijia Mo, 2013. "Impact of food safety information on US poultry demand," Applied Economics, Taylor & Francis Journals, vol. 45(9), pages 1121-1131, March.
    2. Siettou, Christina, 2016. "Avian Influenza: outbreaks and the impact on UK consumer demand for poultry," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236328, Agricultural Economics Society.
    3. repec:ags:gjagec:253154 is not listed on IDEAS
    4. 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 116405, European Association of Agricultural Economists.
    5. 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.
    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. repec:eee:jfpoli:v:69:y:2017:i:c:p:145-153 is not listed on IDEAS
    8. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(2).
    9. 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 49297, Agricultural and Applied Economics Association.
    10. 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.

    More about this item

    Keywords

    BSE; Bird Flu; Almost Ideal demand system; Meat Demand;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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