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Abstract
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.