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Public policy and private incentives for livestock disease control

Author

Listed:
  • Bicknell, Kathryn
  • Wilen, James E.
  • Howitt, Richard E.

Abstract

This article presents a dynamic bioeconomic model of livestock disease control that is unique in its integration of disease dynamics, inter‐species interaction, control‐induced migration, and individual optimising behaviour. Examination of the first‐order conditions highlights why profit‐maximising producers cannot be expected to eradicate disease. Results from an empirical application of the model confirm that the current mix of policies to control bovine tuberculosis in New Zealand is achieving lower levels of prevalence than would prevail in the absence of a national strategy. These policies do, however, appear to remove some of the individual incentive to control disease.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:aareaj:117214
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    File URL: http://purl.umn.edu/117214
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    References listed on IDEAS

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    1. Umali, Dina L & Feder, Gershon & de Haan, Cornelis, 1994. "Animal Health Services: Finding the Balance between Public and Private Delivery," World Bank Research Observer, World Bank Group, vol. 9(1), pages 71-96, January.
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    Cited by:

    1. Richard Horan & Christopher Wolf & Eli Fenichel & Kenneth Mathews, 2008. "Joint Management of Wildlife and Livestock Disease," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(1), pages 47-70, September.
    2. Horan, Richard D. & Wolf, Christopher A., 2003. "The Economics Of Managing Wildlife Disease," 2003 Annual meeting, July 27-30, Montreal, Canada 22224, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Benjamin M. Gramig & Richard D. Horan, 2011. "Jointly determined livestock disease dynamics and decentralised economic behaviour," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 393-410, July.
    4. Frank van Tongeren & John Beghin & Stéphane Marette, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," OECD Food, Agriculture and Fisheries Papers 21, OECD Publishing.
    5. Horan, Richard D. & Melstrom, Richard T., 2011. "No sympathy for the devil," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 367-385.
    6. Ranjan, Ram & Lubowski, Ruben N., 2004. "A Model of Producer Incentives for Livestock Disease Management," Working Papers 15653, University of Florida, International Agricultural Trade and Policy Center.
    7. Benjamin M. Gramig & Richard D. Horan & Christopher A. Wolf, 2008. "Livestock Disease Indemnity Design When Moral Hazard Is Followed by Adverse Selection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 627-641.
    8. 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.
    9. David A. Hennessy, 2007. "Behavioral Incentives, Equilibrium Endemic Disease, and Health Management Policy for Farmed Animals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 698-711.
    10. 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.
    11. Gramig, Benjamin M. & Horan, Richard D. & Wolf, Christopher A., 2005. "A Model of Incentive Compatibility under Moral Hazard in Livestock Disease Outbreak Response," 2005 Annual meeting, July 24-27, Providence, RI 19200, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Fuller, Kate B. & Alston, Julian M. & Sanchirico, James N., 2011. "Spatial Externalities and Vector-Borne Plant Diseases: Pierce’s Disease and the Blue-Green Sharpshooter in the Napa Valley," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103865, Agricultural and Applied Economics Association.
    13. Xie, Fang & Horan, Richard D., 2009. "Disease and Behavioral Dynamics for Brucellosis Control in Elk and Cattle in the Greater Yellowstone Area," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), April.
    14. Xie, Fang & Horan, Richard D., 2008. "Disease and Behavioral Dynamics for Brucellosis in Elk and Cattle in the Greater Yellowstone Area," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6404, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Fraser, Rob, 2016. "Compensation Payments and Animal Disease: Incentivising Farmers Both to Undertake Costly On-farm Biosecurity and to Comply with Disease Reporting Requirements," 2016 Conference (60th), February 2-5, 2016, Canberra, Australia 235307, Australian Agricultural and Resource Economics Society.
    16. Sumner, Daniel A. & Bervejillo, Jose E. & Jarvis, Lovell S., 2005. "Public Policy, Invasive Species and Animal Disease Management," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 8(01).
    17. Tom Kompas & Tuong Nhu Che, 2003. "A pratical optimal quarantine measure," International and Development Economics Working Papers idec03-1, International and Development Economics.
    18. Elbakidze, Levan, 2008. "Modeling of Avian Influenza Mitigation Policies Within the Backyard Segment of the Poultry Sector," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), August.
    19. Wolf, Christopher A., 2005. "Producer Livestock Disease Management Incentives and Decisions," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 8(01).
    20. Horan, Richard D. & Wolf, Christopher A. & Fenichel, Eli P. & Mathews, Kenneth H., Jr., 2004. "Controlling Wildlife And Livestock Disease With Endogenous On-Farm Biosecurity," 2004 Annual meeting, August 1-4, Denver, CO 20349, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Fenichel, Eli P. & Horan, Richard D. & Wolf, Christopher A., 2004. "The Role Of Sexual Dimorphism In The Economics Of Wildlife Disease Management," 2004 Annual meeting, August 1-4, Denver, CO 20395, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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