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Jointly determined livestock disease dynamics and decentralised economic behaviour

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  • Benjamin M. Gramig
  • Richard D. Horan

Abstract

We develop a dynamic model of livestock disease and decentralized economic behavior as a jointly-determined system. By accounting for feedbacks between behavioral choices and disease outcomes we capture the endogenous nature of infection risks. We consider government mandated testing of livestock herds and how private biosecurity incentives are affected by the structure of disease eradication polices. How well disease control policies are targeted affects their effectiveness and may result in farmers substituting government testing and disease surveillance for private biosecurity. Numerical simulation results demonstrate that failing to account for feedbacks between disease and economic dynamics may underestimate the level of infection. Not accounting for behavioral responses to infection risks may overestimate the effectiveness of government disease control policies.

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Bibliographic Info

Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

Volume (Year): 55 (2011)
Issue (Month): 3 (07)
Pages: 393-410

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Handle: RePEc:bla:ajarec:v:55:y:2011:i:3:p:393-410

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-8489
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Cited by:
  1. Leister, Amanda M. & Lee, John G. & Paarlberg, Philip P., 2013. "Dynamic Effects of Drought on the U.S. Livestock Sector," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149946, Agricultural and Applied Economics Association.
  2. Kobayashi, Mimako & Melkonyan, Tigran A., 2011. "Strategic Incentives in Biosecurity Actions: Theoretical and Empirical Analyses," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), August.

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