Campus Units

Economics

Document Type

Presentation

Conference

Agricultural and Applied Economics Association 2012 Annual Meeting

Publication Version

Submitted Manuscript

Publication Date

2012

First Page

1

Last Page

25

Conference Title

2012 AAEA Annual Meeting

Conference Date

August 12-14, 2012

City

Seattle, Washington

Abstract

Iowa egg producers recalled nearly 500 million eggs in August 2010. The typical effect of a recall is to cause a decline in the demand for the affected product, yielding a decrease in the price. In the case of August 2010 egg recall, the price of eggs increased in the following weeks. This essay investigates the market effects of the egg recall. I estimate a system of simultaneous equations that includes supply and demand equations for the two main segments of the US industry. This essay offers preliminary evidence of the market effects of the August 2010 egg recall and describes the methodology to estimate the shift in consumers’ willingness to pay for eggs accounting for the diversion of eggs in the other segment of the industry.

Comments

This is a Selected Paper prepared for presentation at the Agricultural & Applied Economics Association’s 2012 AAEA Annual Meeting, Seattle, Washington, August 12- 14, 2012.

Rights

Copyright 2012 by Sebastien Pouliot. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies.

Copyright Owner

The Authors

Language

en

File Format

application/pdf

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