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An Optimal Surveillance Measure Against Foot-and-Mouth Disease in the United States

Author

Listed:
  • van Ha, Pham
  • Che, Tuong Nhu
  • Kompas, Tom

Abstract

Surveillance 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 jump-diffusion 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.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:aare07:10354
    DOI: 10.22004/ag.econ.10354
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    Cited by:

    1. is not listed on IDEAS
    2. Graziano Ceddia, Michele & Heikkilä, Jaakko & Peltola, Jukka, 2008. "Biosecurity in agriculture: an economic analysis of coexistence of professional and hobby production," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 1-18.

    More about this item

    Keywords

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    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • 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; Animal Welfare Policy

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