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The Effect of the BSE Outbreak in Japan on Consumers’ Preferences

Authors
Jin, Hyun JoungKoo, Won W.
Issue Date
Jun-2003
Publisher
Oxford University Press
Keywords
BSE (mad cow disease); Japanese consumers; Revealed preference test; Structural change; WARP
Citation
European Review of Agricultural Economics, v.30, no.2, pp 173 - 192
Pages
20
Journal Title
European Review of Agricultural Economics
Volume
30
Number
2
Start Page
173
End Page
192
URI
https://scholarworks.bwise.kr/cau/handle/2019.sw.cau/59831
ISSN
0165-1587
1464-3618
Abstract
A nonparametric approach was used to test whether there was a structural change in Japanese consumers' demand for meat as a result of the BSE outbreak in the country. The axiom of revealed preference was utilised to test the stability of preferences in Japanese meat consumption. The matrix of the weak form of revealed preference (WARP) was partitioned and Kruskal-Wallis statistics were derived to evaluate whether the preference switches found are transitory or due to a structural change. Empirical results show that Japanese meat demand is currently unstable and has undergone structural change, synchronised with the BSE outbreak in Japan in mid-September 2001.
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Jin, Hyun Joung
경영경제대학 (경제학부(서울))
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