This paper generalizes the standard error correction model and applies this more general modeling procedure to an analysis of the spinach e-coli outbreak on consumer demand.

This paper generalizes the standard error correction model and applies this more general modeling procedure to an analysis of the spinach e-coli outbreak on consumer demand.

Consumers responded to the Food and Drug Administration’s September 2006 warnings to avoid eating spinach because of possible contamination with E. coli O157:H7. While spinach expenditures fell, consumers turned to other leafy greens as substitutes. The longer term drop in retail...

This study identifies consumer welfare from new brand introductions in the potato chip market. Price and variety effects of new brand introduction are measured by estimating a demand system underlying an expenditure function. Variety effects are positive in most cities, while price effects are...