In this paper, we propose new research methods and approaches in the area of food safety economics that would improve the allocation and effectiveness of private and public resources and efforts in ensuring food safety. The focus is on approaches that would build a comprehensive understanding of the interdependence between private and public food safety control mechanisms, including direct regulation by process and performance safety standards, traceability requirements, product liability, and product liability insurance; contribute to the development and analysis of loss control functions related to food safety hazards and to the assessment of the insurability of agricultural producers and food processors from such risks; as well as evaluate the impact of food safety hazards on producers and processors and determine whether and how businesses respond to food safety outbreaks affecting other businesses in the same industry.