This 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...

This chapter addresses the analysis of markets for food products that are differentiated by safety characteristics. The first part of the paper surveys the broad array of issues that are involved in food safety and the regulations that have been devised to address them. The next sections of the...