Estimating the Market Effect of a Food Scare: The Case of Genetically Modified StarLink Corn
The Review of Economics and Statistics
2007
In 2000, a genetically modified corn variety called StarLink that was not approved for human consumption was discovered in the food-corn supply. To estimate the price impact of this event on the U.S. corn market, we develop the relative price of a substitute method. This method applies not only to the StarLink event but also to rare events in other markets. We find that the contamination led to a 6.8% discount in corn prices and that the suppression of prices lasted for at least a year.
- DOI
- 10.1162/rest.89.3.522
- Volume
- 89 (3)
- Pages
- 522-533
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref