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A pratical optimal quarantine measure

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  • Tom Kompas
  • Tuong Nhu Che

Abstract

Quarantine programs have generally provided an essential protection against the importation of exotic diseases, thus protecting both consumers and producers from major health concerns and pests and diseases that can potentially destroy local agricultural production. However, quarantine measures also impose costs in the form of expenditures on the quarantine program itself and the welfare losses that are associated with such trade restrictions. This paper develops a simple model to determine the optimal level of quarantine activity for imported livestock by minimizing the present-value of the direct costs of the disease, the cost of the quarantine program and any resulting welfare losses. The result defines a practical measure for the optimal number of infected livestock that may potentially enter a region in a given year. The model is then applied to the case of Ovine Johne’s Disease and its potential entry to the sheep industry in Western Australia. All key parameter values are subject to random variation and the optimal solution and sensitivity measures are obtained with a genetic algorithm.

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File URL: https://crawford.anu.edu.au/degrees/idec/working_papers/IDEC03-1.pdf
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Bibliographic Info

Paper provided by International and Development Economics in its series International and Development Economics Working Papers with number idec03-1.

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Length: 17 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:idc:wpaper:idec03-1

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  1. Anderson, Kym & James, Sarah, 1998. "On the Need for More Economic Assessment of Quarantine/SPS Policies," CEPR Discussion Papers 1934, C.E.P.R. Discussion Papers.
  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.
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