Cost-Effective Hazard Control in Food Handling

John Fox and David Hennessy

American Journal of Agricultural Economics, 1999, vol. 81, issue 2, 359-372

Abstract: We develop a bioeconomic model to investigate postharvest food quality control. The trade-off between costly intervention and economic damage is studied when economic parameters, such as fixed and variable costs of control, and biological parameters, such as the stochastic rate of contamination and the growth rate of contaminants, are altered. The model can accommodate alternative environmental settings. Regulations through random inspections and through terminal inspections are analyzed. As an illustration, optimal actions to control insect infestations in stored wheat are simulated and found to be in accord with commercial practice. Copyright 1999, Oxford University Press.

Date: 1999
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