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Demand Response for Imported and Domestic Poultry Meat Products to Food Safety Regulations in Japan: An Application of the Almost Ideal Demand System Model

  • Tsunehiro Otsuki

    (Osaka School of International Public Policy, Osaka University)

This study estimates the response of Japanese consumersf demand for poultry meat to the food safety regulations at the border using the almost ideal demand system (AIDS) with a particular focus on the maximum residue limits (MRL) on pesticides and veterinary drugs. The AIDS model allows for differing demand response to the food safety regulations across goods from different origins as consumers tend to rearrange their consumption within a product category. The results indicate the asymmetry of the demand response to a change in MRLs and avian-influenza bans. Tightening the MRLs reduces domestic demand for poultry meat as well as demand for imports from China and the US, and increases demand for imports from Brazil. Thus, the assessment of the impact of regulatory policies needs to take consumersf flexible rearrangement of bundles into account.

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File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2011/DP2011E007.pdf
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Paper provided by Osaka School of International Public Policy, Osaka University in its series OSIPP Discussion Paper with number 11E007.

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Length: 22 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:osp:wpaper:11e007
Contact details of provider: Postal: 1-31, Machikaneyama, Toyonaka, Osaka, 560-0043
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Web page: http://www.osipp.osaka-u.ac.jp/

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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 of Agricultural Economists, International Association of Agricultural Economists, vol. 25(2-3), September.
  2. Henneberry, Shida Rastegari & Hwang, Seonghuyk, 2007. "Meat Demand in South Korea: An Application of the Restricted Source-Differentiated Almost Ideal Demand System Model," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(01), April.
  3. Yang, Seung-Ryong & Koo, Won W., 1994. "Japanese Meat Import Demand Estimation With The Source Differentiated Aids Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(02), December.
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