Putting the Chicken Before the Egg Price: An Ex Post Analysis of California’s Battery Cage Ban
California legislation outlawed the use and sale of battery cages for egg-laying hens in 2015. While a number of ex ante studies projected the effects of the housing prohibitions, the ultimate ex post effects are unknown. Using a price series reported by the USDA, we study the movement of daily egg prices in California and the United States before and after the law’s implementation. Depending on the methods used, we find that Californians now pay between $0.48 and $1.08 more for a dozen eggs. The estimates suggest an annual reduction in California consumer surplus of between $400 million and $850 million.
Malone, Trey; Lusk, Jayson L., Putting the Chicken Before the Egg Price: An Ex Post Analysis of California's Battery Cage Ban, Journal of Agricultural and Resource Economics, Volume 41, Issue 3, September 2016, Pages 518–532
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