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In 2006 FDA announced that consumers should not eat fresh spinach in the wake of a large foodborne illness outbreak of E. coli O157:H7. This paper investigates response of consumers to the announcement. We use an AIDS demand model with 5 food safety shock variables and retail scanner data to...
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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.
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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...
Persistent link: https://www.econbiz.de/10011142701
Health and safety officials are sometimes placed in an awkward position: knowing that a foodborne disease outbreak is occurring but not knowing which food is responsible. They have to advise consumers, but relying on ambiguous and evolving information raises the question, how do consumers...
Persistent link: https://www.econbiz.de/10010988666
This investigation into the traceability baseline in the United States finds that private sector food firms have developed a substantial capacity to trace. Traceability systems are a tool to help firms manage the flow of inputs and products to improve efficiency, product differentiation, food...
Persistent link: https://www.econbiz.de/10005320659
A retail demand model measured the impact of the Food and Drug Administration's 2006 announcement warning consumers about E. coli O157: H7 contamination in spinach. Model results indicated that bulk lettuces were shock substitutes (in contrast to price substitutes) as consumers purchased...
Persistent link: https://www.econbiz.de/10009390769