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Demand Response for Imported and Domestic Poultry Meat Products to Food Safety Regulations in Japan: An Application of the Almost Ideal Demand System Model

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  • Tsunehiro Otsuki

    (Osaka School of International Public Policy, Osaka University)

Abstract

This study estimates the response of Japanese consumers f demand for poultry meat to the food safety regulations at the border using the almost ideal demand system (AIDS) with a particular focus on the maximum residue limits (MRL) on pesticides and veterinary drugs. The AIDS model allows for differing demand response to the food safety regulations across goods from different origins as consumers tend to rearrange their consumption within a product category. The results indicate the asymmetry of the demand response to a change in MRLs and avian-influenza bans. Tightening the MRLs reduces domestic demand for poultry meat as well as demand for imports from China and the US, and increases demand for imports from Brazil. Thus, the assessment of the impact of regulatory policies needs to take consumers f flexible rearrangement of bundles into account.

Suggested Citation

  • Tsunehiro Otsuki, 2011. "Demand Response for Imported and Domestic Poultry Meat Products to Food Safety Regulations in Japan: An Application of the Almost Ideal Demand System Model," OSIPP Discussion Paper 11E007, Osaka School of International Public Policy, Osaka University.
    • Handle: RePEc:osp:wpaper:11e007
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    File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2011/DP2011E007.pdf
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    References listed on IDEAS

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    1. Henneberry, Shida Rastegari & Hwang, Seonghuyk, 2007. "Meat Demand in South Korea: An Application of the Restricted Source-Differentiated Almost Ideal Demand System Model," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(1), pages 1-14, April.
    2. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, vol. 25(2-3), pages 359-374, September.
    3. Henneberry, Shida Rastegari & Hwang, Seong-huyk, 2007. "Meat Demand in South Korea: An Application of the Restricted Source-Differentiated Almost Ideal Demand System Model," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(1), pages 47-60, April.
    4. Yang, Seung-Ryong & Koo, Won W., 1994. "Japanese Meat Import Demand Estimation With The Source Differentiated Aids Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-13, December.
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    Cited by:

    1. Qizhong Yang & Keiichiro Honda & Tsunehiro Otsuki, 2019. "Structural demand estimation of the response to food safety regulations in the Japanese poultry market," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(3), pages 367-385, September.
    2. Motallebi, Marzieh & Pendell, Dustin L., 2013. "Estimating an Almost Ideal Demand System Model for Meats in Iran," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150188, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Poultry meat trade; food safety regulations; the AIDS model;
    All these keywords.

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • F10 - International Economics - - Trade - - - General
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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