Food Safety and Spinach Demand: A Generalized Error Correction Model

Carlos Arnade, Fred Kuchler and Linda Calvin

Agricultural and Resource Economics Review, 2011, vol. 40, issue 2, 15

Abstract: We estimate an error correction model representing demand for leafy green vegetables but generalize the structure to allow for adjustment to one conspicuous shock. We investigate whether the adjustment rate to the U.S. Food and Drug Administration’s (FDA) 2006 warning that fresh spinach was contaminated with deadly bacteria was distinct from the overall adjustment rate. Our model allows consumers to correct both for past errors and for any errors in their reaction to the shock. This method yields an estimate of the adjustment rate to the policy shock and points to an improved estimate of the duration of policy impacts.

Keywords: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Health Economics and Policy (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (4)

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Journal Article: Food Safety and Spinach Demand: A Generalized Error Correction Model (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:arerjl:117775

DOI: 10.22004/ag.econ.117775

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