Agricultural and Resource Economics Review ()

Foodborne illnesses and product liability in the U.S.

  • Marziyeh Bahalou Horeh,
  • Levan Elbakidze,
  • Ana Claudia Sant'Anna

DOI
https://doi.org/10.1017/age.2022.25

Abstract

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A regulatory liability-based approach to reducing foodborne illnesses is widely used in the U.S. But how effective is it? We exploit regulatory regime variation across states and over time to examine the relationship between product liability laws and reported foodborne illnesses. We find a positive and statistically significant relationship between strict liability with punitive damages and the number of reported foodborne illnesses. We find, however, no statistically significant relationship between strict liability with punitive damages and the number of foodborne illness-related hospitalizations and deaths.

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