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Economic Effects of a Ban Against Antimicrobial Drugs Used in U.S. Beef Production

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  • Mathews, Kenneth H.

Abstract

Economic effects for three scenarios of antimicrobial drug use in livestock production—a no-ban scenario and two levels of bans—are examined through cost minimization and a partial equilibrium analysis. Results indicate that regulating antimicrobial drug use in livestock production would increase per-unit costs of producers previously using drugs and reduce beef supplies in the short run, reducing consumer surplus. Producers not previously using drugs would benefit from short-run price increases.

Suggested Citation

  • Mathews, Kenneth H., 2002. "Economic Effects of a Ban Against Antimicrobial Drugs Used in U.S. Beef Production," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(3), pages 513-530, December.
    • Handle: RePEc:cup:jagaec:v:34:y:2002:i:03:p:513-530_00
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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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