The Korean Journal of Community Living Science (한국지역사회생활과학회지)

The Korean Society of Community Living Science (한국지역사회생활과학회)
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An Impact Analysis of FMD News on Pork Demand in Korea

구제역 발생이 돼지고기 소비에 미친 영향분석

  • Gim, Uhn-Soon (Dept. of Agricultural Economics, Chungnam National University) ;
  • Choi, Se-Hyun (Dept. of Agricultural Economics, Pusan National University) ;
  • Cho, Jae-Hwan (Dept. of Agricultural Economics, Pusan National University)
  • 김은순 (충남대학교 농업경제학과) ;
  • 최세현 (부산대학교 농업경제학과) ;
  • 조재환 (부산대학교 농업경제학과)
  • Received : 2014.02.14
  • Accepted : 2015.02.16
  • Published : 2015.02.27
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Abstract

This study investigates the impact of livestock diseases, including FMD(foot-and-mouth disease) and MCD(mad-cow disease), on pork demand in Korea. TV news stories about the livestock diseases were considered as negative advertising, and therefore the carry-over effect of negative advertising was combined with the pork demand model in conjunction with an exponential distributed lag function. The asymmetry hypothesis was imposed, however it was accepted that demand response does not show different sensitivities to increases and decreases in the livestock disease news. FMD news had a negative effect on pork demand, whereas MCD news had a positive effect, yet FMD news had a greater effect on pork demand than MCD news. The pork demand elasticity estimates for FMD and MCD news were -0.0071 and 0.0028, respectively. The cross-elasticity of the imported beef price to pork demand was highly inelastic, but it was elastic during the beef import embargo.

Keywords

References

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