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Can Increasing Returns Occur in Pest Management?

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  • Fox, Glenn
  • Weersink, Alfons

Abstract

This paper analyses the role of damage control inputs in production. Damage control inputs differ from conventional inputs in that they act indirectly or conditionally on output. Their productivity depends on the presence of a damage agent. Examples of damage control inputs include crime and fire protection, flood control and irrigation, disease prevention in people, plarits and animals, and national defense. Agricultural economists, other agricultural researchers and foresters have also studied damage control inputs in pest management models. The indirect action of damage control inputs means that the marginal productivity of this class of inputs depends on their effectiveness in controlling the damage agent, the level of damage agent and the degree of production loss caused by a given level of damage agent. Our analysis shows that increasing returns to the damage control input, in terms of its effect on production, can occur even when the control and damage functions are concave.

Suggested Citation

  • Fox, Glenn & Weersink, Alfons, 1993. "Can Increasing Returns Occur in Pest Management?," Department of Agricultural Economics and Business 258722, University of Guelph.
    • Handle: RePEc:ags:uguaeb:258722
    DOI: 10.22004/ag.econ.258722
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    References listed on IDEAS

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    1. D. J. Pannell, 1990. "Responses To Risk In Weed Control Decisions Under Expected Profit Maximisation," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(3), pages 391-401, September.
    2. Erik Lichtenberg & David Zilberman, 1986. "The Econometrics of Damage Control: Why Specification Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 261-273.
    3. Catalina Carrasco-Tauber & L. Joe Moffitt, 1992. "Damage Control Econometrics: Functional Specification and Pesticide Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 158-162.
    4. S. M. Swinton, 1991. "Responses To Risk In Weed Control Decisions Under Expected Profit Maximisation: Comment," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 404-405, September.
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