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 ()

No 11E007, OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University

Abstract: This study estimates the response of Japanese consumers f 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 consumers f flexible rearrangement of bundles into account.

Keywords: Poultry meat trade; food safety regulations; the AIDS model (search for similar items in EconPapers)
JEL-codes: D18 F10 Q11 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2011-11
New Economics Papers: this item is included in nep-agr and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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