Economics at your fingertips  

How Scary Are Food Scares? Evidence from Animal Disease Outbreaks

Matthew Houser and Berna Karali

Applied Economic Perspectives and Policy, 2020, vol. 42, issue 2, 283-306

Abstract: The economic impacts of food safety events are an ongoing concern for the food industry and policymakers. Animal disease outbreaks can be characterized by prolonged abnormal returns and greater price variability in livestock markets. We investigate the return and volatility patterns in live cattle and lean hog futures following BSE and H1N1 outbreaks by modeling time‐varying volatility and spillover effects between these substitutes. We find that cattle and hog futures markets were affected during these outbreaks with decreasing returns and increasing volatility. Volatility of hogs is found to reduce cattle volatility, providing evidence for price stabilization across linked markets.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

Related works:
Working Paper: How Scary Are Food Scares? Evidence from Animal Disease Outbreaks (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Applied Economic Perspectives and Policy from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2022-07-25
Handle: RePEc:wly:apecpp:v:42:y:2020:i:2:p:283-306