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Consumer and Market Responses to Mad-Cow Disease AgEcon
Schlenker, Wolfram; Villas-Boas, Sofia Berto.
We examine how consumers and financial markets in the United States react to two health warnings about mad cow disease: The first discovery of an infected cow in December 2003 as well as health warnings about the potential effects aired in the highly-watched Oprah- Winfrey show seven years earlier. Using a unique UPC-level scanner data set, we find a pronounced and significant reduction in beef sales following the first discovered infection. This effect slowly dissipates over the next three months. Interestingly, no significant impact can be detected in the diary files of the Consumer Expenditure Survey (CES) that has a much smaller sampling frame. However, futures prices show a comparable drop in prices to the scanner data. Contracts with longer maturity...
Tipo: Working or Discussion Paper Palavras-chave: Food safety; Mad cow diseases; Consumer expenditure survey; Scanner data; Futures prices; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries; D12; Q18; M31.
Ano: 2006 URL:
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