An Optimal Surveillance Measure Against Foot and Mouth Disease in the United States
AbstractSurveillance programs on farms and in the local environment provide an essential protection against the importation and spread of exotic diseases. Combined with border quarantine measures, these programs protect both consumers and producers from major health concerns and disease incursions that can potentially destroy local agricultural production and supporting industries, as well as generate substantial losses in trade and tourism. However, surveillance programs also impose costs in the form of expenditures on the surveillance program itself, along with the costs of disease management and eradication should an incursion occur. Taking border quarantine expenditures as given, this paper develops a stochastic optimal control model (with a jumpdiffusion process) to determine the optimal level of surveillance activity against a disease incursion by minimizing the present value of the major direct and indirect costs of the disease, as well as the cost of the surveillance and disease management and eradication programs. The model is applied to the case of a potential entry and spread of Foot and Mouth Disease in the United States. Results show that current surveillance expenditures are far less than optimal.
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Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 21813.
Date of creation: Nov 2006
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Surveillance measures; border quarantine; disease incursion and spread; Foot and Mouth;
Other versions of this item:
- Tom Kompas & Tuong Nhu Che & Pham Van Ha, 2006. "An Optimal Surveillance Measure Against Foot-and-Mouth Disease in the United States," International and Development Economics Working Papers idec06-11, International and Development Economics.
- van Ha, Pham & Che, Tuong Nhu & Kompas, Tom, 2007. "An Optimal Surveillance Measure Against Foot-and-Mouth Disease in the United States," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10354, Australian Agricultural and Resource Economics Society.
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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