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Biosecurity and Spread of an Infectious Disease

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  • Hennessy, David A.

Abstract

The spatial dimension of agricultural production is important when a communicable disease enters a region. This paper considers two sorts of biosecurity risk that producers can seek to protect against. One concerns the risk of spread: that neighboring producers do not take due care in protecting against being infected by a disease already in the region. In this case, producer efforts substitute with those of near neighbors. For representative spatial production structures, we characterize Nash equilibrium protection levels and show how spatial production structure matters. The other sort of risk concerns entry: that producers do not take due care in preventing the disease from entering the region. In this case, producer heterogeneity has subtle effects on welfare loss due to strategic behavior. Efforts by producers complement, suggesting that interfarm communication will help to redress the problem.

Suggested Citation

  • Hennessy, David A., 2012. "Biosecurity and Spread of an Infectious Disease," Staff General Research Papers Archive 35013, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:35013
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    Cited by:

    1. Niemi, Jarkko K. & Lyytikainen, Tapani & Sahlstrom, Leena & Virtanen, Terhi & Lehtonen, Heikki, 2009. "Risk Classification in Animal Disease Prevention: Who Benefits from Differentiated Policy?," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49307, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    circle and line topologies; complements and substitutes; epidemic; public good;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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