Estimating the Market Effect of a Food Scare: The Case of Genetically Modified StarLink Corn

A-Tier
Journal: Review of Economics and Statistics
Year: 2007
Volume: 89
Issue: 3
Pages: 522-533

Authors (2)

Colin A. Carter (not in RePEc) Aaron Smith (University of California-Davis)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Technical Details

RePEc Handle
repec:tpr:restat:v:89:y:2007:i:3:p:522-533
Journal Field
General
Author Count
2
Added to Database
2026-01-25