Infectious Disease, Productivity, and Scale in Open and Closed Animal Production Systems
Trade in feeder animals creates externalities when animal diseases can spread beyond the purchasing farm. If growers choose between open and closed production systems, then Nash equilibrium likely involves excessive trading. While first-best equilibrium involves market-wide adoption of either an open-trade or closed-farm system, equilibrium may entail heterogeneous systems. If so, then the feeder trade should be restricted. Supply response to an increase in marginal costs may be positive. Within a farm, infectious disease risk can create decreasing returns to scale when the technology is otherwise increasing returns. Contractual procurement and damage control technologies will likely increase scale in finishing.
|Date of creation:||15 Jul 2004|
|Date of revision:|
|Publication status:||Published in American Journal of Agricultural Economics, November 2005, vol. 87, pp. 900-917|
|Contact details of provider:|| Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070|
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Richard Bennett, 2003. "The 'Direct Costs'of Livestock Disease: The Development of a System of Models for the Analysis of 30 Endemic Livestock Diseases in Great Britain," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 55-71.
- Skaggs, Rhonda K. & Acuna, Rene & Torell, L. Allen & Southard, Leland W., 2004. "Live Cattle Exports from Mexico into the United States: Where Do the Cattle Come From and Where Do They Go?," Choices, Agricultural and Applied Economics Association, vol. 19(1).
- Geoffard, P.Y. & Philipson, T., 1995.
"Rational Epidemics and their Public Control,"
DELTA Working Papers
95-15, DELTA (Ecole normale supérieure).
- 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.
- Chi, Junwook & Weersink, Alfons & Vanleeuwen, John A. & Keefe, Gregory P., 2001. "The Economics Of Controlling Infectious Diseases On Dairy Farms," Working Papers 34119, University of Guelph, Department of Food, Agricultural and Resource Economics.
- Topkis Donald M., 1995. "Comparative Statics of the Firm," Journal of Economic Theory, Elsevier, vol. 67(2), pages 370-401, December.
- Milgrom, P. & Shannon, C., 1991.
"Monotone Comparative Statics,"
11, Stanford - Institute for Thoretical Economics.
- Michael Kremer, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 551-575.
When requesting a correction, please mention this item's handle: RePEc:isu:genres:11996. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Curtis Balmer)
If references are entirely missing, you can add them using this form.