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A Model of Producer Incentives for Livestock Disease Management

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  • Ranjan, Ram
  • Lubowski, Ruben N.
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    Abstract

    We examine the management of livestock diseases from the producers' perspective, incorporating information and incentive asymmetries between producers and regulators. Using a dynamic model, we examine responses to different policy options including indemnity payments, subsidies to report at-risk animals, monitoring, and regulatory approaches to decreasing infection risks when perverse incentives and multiple policies interact. This conceptual analysis illustrates the importance of designing efficient combinations of regulatory and incentive-based policies.

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    File URL: http://purl.umn.edu/15653
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    Bibliographic Info

    Paper provided by University of Florida, International Agricultural Trade and Policy Center in its series Working Papers with number 15653.

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    Date of creation: 2004
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    Handle: RePEc:ags:uflowp:15653

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    Web page: http://www.iatpc.ifas.ufl.edu/
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    Related research

    Keywords: livestock disease; asymmetric information; reporting; indemnities; risk management; Livestock Production/Industries; C61; D82; Q12; Q18; Q28;

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    1. Lloyd, Tim & McCorriston, S. & Morgan, C. W. & Rayner, A. J., 2001. "The impact of food scares on price adjustment in the UK beef market," Agricultural Economics, Blackwell, vol. 25(2-3), pages 347-357, September.
    2. Bicknell, Kathryn & Wilen, James E. & Howitt, Richard E., 1999. "Public policy and private incentives for livestock disease control," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(4), December.
    3. Clarke, Harry R. & Reed, William J., 1994. "Consumption/pollution tradeoffs in an environment vulnerable to pollution-related catastrophic collapse," Journal of Economic Dynamics and Control, Elsevier, vol. 18(5), pages 991-1010, September.
    4. David Aadland, 2001. "Cattle Cycles, Heterogeneous Expectations and the Age Distribution of Capital," Working Papers 2002-02, Utah State University, Department of Economics.
    5. Jon Gjerde & Sverre Grepperud & Snorre Kverndokk, 1998. "Optimal Climate Policy under the Possibility of a Catastrophe," Discussion Papers 209, Research Department of Statistics Norway.
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