A general equilibrium analysis of foreign and domestic demand shocks arising from mad cow disease in the United States

Stephen Devadoss, David W. Holland, Leroy Stodick, Joydeep Ghosh

Research output: Contribution to journalReview articlepeer-review

11 Scopus citations

Abstract

The discovery of the first case of mad cow disease in the United States in 2003 reverberated across the beef and cattle industry. This study employs a general equilibrium model to analyze the potential economic effects of mad cow disease on the beef, cattle, and other meat industries under three scenarios, ranging from most favorable to most pessimistic. The scenario with 90% foreign demand decline and 10% domestic demand reduction generates results consistent with the actual outcomes after the mad cow disease outbreak. Only if domestic demand declines significantly will the economic hardship in the U.S. beef and cattle industry be very large.

Original languageEnglish
Pages (from-to)441-453
Number of pages13
JournalJournal of Agricultural and Resource Economics
Volume31
Issue number2
StatePublished - Aug 2006

Keywords

  • Demand decline
  • Economic effects
  • Mad cow disease

Fingerprint

Dive into the research topics of 'A general equilibrium analysis of foreign and domestic demand shocks arising from mad cow disease in the United States'. Together they form a unique fingerprint.

Cite this