ON ASPECTS OF FOOD SAFETY AND INTERNATIONAL TRADE

Donald Maclaren ()
Additional contact information
Donald Maclaren: Department of Economics, The University of Melbourne, VIC 3010, Australia

The Singapore Economic Review (SER), 2006, vol. 51, issue 02, 135-145

Abstract: International supply chains in the food industry have lengthened in recent years and new sources of risk have arisen. With increased consumers' incomes, perceptions about food safety have become sharper and food safety has become an important issue in public policy both domestically and internationally. The safety of food is a credence characteristic which gives rise to a particular form of market failure involving either asymmetric information and moral hazard or symmetric imperfect information. An example from a recent experience in the UK was used to illustrate the issue of moral hazard, as well as the possible responses to it. A partial equilibrium model of an open economy was developed to investigate how the moral hazard problem that is caused for importing firms by the actions of exporting firms could be solved by the market rather than by government intervention.

Keywords: Food safety; credence characteristic; moral hazard; international trade (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590806002317
Access to full text is restricted to subscribers

Related works:
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: https://EconPapers.repec.org/RePEc:wsi:serxxx:v:51:y:2006:i:02:n:s0217590806002317

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590806002317

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().