TY - JOUR
T1 - Food scare crises and price volatility
T2 - The case of the BSE in Spain
AU - Serra, Teresa
N1 - Funding Information:
The author gratefully acknowledges financial support from Instituto Nacional de Investigaciones Agrícolas (INIA) and the European Regional Development Fund (ERDF), Plan Nacional de Investigación Científica, Desarrollo e Innovación Tecnológica (I+D+i), Project Reference Number RTA2009-00013-00-00. The author wishes to thank two anonymous referees and Nigel Poole for comments that strengthened this article.
PY - 2011/4
Y1 - 2011/4
N2 - Recent incidents of contaminated food products coupled with the widespread diffusion of news by mass media and the growing social concerns about food safety, have resulted in significant food market crises. One of the most highly publicized recent food scares involved Bovine Spongiform Encephalopathy (BSE). In our analysis, we evaluate the impacts from a BSE outbreak on the price volatility transmission along the Spanish food marketing chain by using a smooth transition conditional correlation (STCC) GARCH model. Our work is the first to assess price volatility responses to food scares. Results suggest that two distinct regimes involving different price volatility behavior can be distinguished, one characterized by turbulent markets and another where markets are calming down.
AB - Recent incidents of contaminated food products coupled with the widespread diffusion of news by mass media and the growing social concerns about food safety, have resulted in significant food market crises. One of the most highly publicized recent food scares involved Bovine Spongiform Encephalopathy (BSE). In our analysis, we evaluate the impacts from a BSE outbreak on the price volatility transmission along the Spanish food marketing chain by using a smooth transition conditional correlation (STCC) GARCH model. Our work is the first to assess price volatility responses to food scares. Results suggest that two distinct regimes involving different price volatility behavior can be distinguished, one characterized by turbulent markets and another where markets are calming down.
KW - BSE food scare
KW - Food price volatility
KW - STCC-GARCH
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U2 - 10.1016/j.foodpol.2010.11.006
DO - 10.1016/j.foodpol.2010.11.006
M3 - Article
AN - SCOPUS:79952317822
SN - 0306-9192
VL - 36
SP - 179
EP - 185
JO - Food Policy
JF - Food Policy
IS - 2
ER -