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

Author

Listed:
  • Tom Kompas

    (Crawford, ANU)

  • Tuong Nhu Che
  • Pham Van Ha

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 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.

Suggested Citation

  • Tom Kompas & Tuong Nhu Che & Pham Van Ha, 2006. "An Optimal Surveillance Measure Against Foot and Mouth Disease in the United States," Development Economics Working Papers 21813, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:develo:21813
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    References listed on IDEAS

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    1. James, Sallie & Anderson, Kym, 1998. "On the need for more economic assessment of quarantine/SPS policies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), pages 1-20.
    2. Zhao, Zishun & Wahl, Thomas I. & Marsh, Thomas L., 2006. "Invasive Species Management: Foot-and-Mouth Disease in the U.S. Beef Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(1), pages 98-115, April.
    3. J. D. Mumford, 2002. "Economic issues related to quarantine in international trade," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(3), pages 329-348, July.
    4. Junwook Chi & Alfons Weersink & John A. VanLeeuwen & Gregory P. Keefe, 2002. "The Economics of Controlling Infectious Diseases on Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 50(3), pages 237-256, November.
    5. Saphores, Jean-Daniel M. & Shogren, Jason F., 2005. "Managing exotic pests under uncertainty: optimal control actions and bioeconomic investigations," Ecological Economics, Elsevier, vol. 52(3), pages 327-339, February.
    6. 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), pages 1-21, December.
    7. John Mclnerney, 1996. "Old Economics For New Problems ‐Livestock Disease: Presidential Address," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 295-314, January.
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    Surveillance measures; border quarantine; disease incursion and spread; Foot and Mouth;
    All these keywords.

    JEL classification:

    • 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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