This paper generalizes the standard error correction model and applies this more general modeling procedure to an analysis of the spinach e-coli outbreak on consumer demand.

Consumers responded to the Food and Drug Administration’s September 2006 warnings to avoid eating spinach because of possible contamination with E. coli O157:H7. While spinach expenditures fell, consumers turned to other leafy greens as substitutes. The longer term drop in retail...

This paper generalizes the standard error correction model and applies this more general modeling procedure to an analysis of the spinach e-coli outbreak on consumer demand.

In 2006 FDA announced that consumers should not eat fresh spinach in the wake of a large foodborne illness outbreak of E. coli O157:H7. This paper investigates response of consumers to the announcement. We use an AIDS demand model with 5 food safety shock variables and retail scanner data to...

We estimate an error correction model representing demand for leafy green vegetables but generalize the structure to allow for adjustment to one conspicuous shock. We investigate whether the adjustment rate to the U.S. Food and Drug Administration’s (FDA) 2006 warning that fresh spinach...