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Wiley InterScience | |||||||||||
  American Journal of Agricultural EconomicsVolume 82 Issue 2, Pages 310 - 322 Published Online: 7 Jan 2003 © 2009 Agricultural and Applied Economics Association
Abstract | Full Text: PDF (Size: 114K) | Related Articles | Citation Tracking  Copyright 2000 American Agricultural Economics Association KEYWORDS cost of regulation • food safety • meat industry ABSTRACTThis study develops theoretical and econometric cost function models for the meat industry to test the hypothesis of safety exogeneity, i.e., that product safety does not affect productive efficiency. Using plant-level data from the Census of Manufactures, this hypothesis is rejected. Estimates of the impacts of food safety regulation on variable cost of production in the beef, pork, and poultry industries show that the efficiency costs of food safety regulations could plausibly exceed benefits estimated by the U.S. Department of Agriculture. Costs of regulation per pound of meat are found to be size neutral for all but the smallest plants.
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