Jointly Determined Livestock Disease Dynamics and Decentralised Economic Behaviour

18 Pages Posted: 5 Jul 2011

See all articles by Ben Gramig

Ben Gramig

University of Illinois at Urbana-Champaign

Richard D. Horan

Michigan State University - Department of Agricultural Economics

Date Written: July 2011

Abstract

A dynamic model of livestock disease and decentralised economic behaviour is constructed as a jointly determined system. By accounting for feedbacks between behavioural choices and disease outcomes, the model captures the endogenous nature of infection risks. Government mandated testing of livestock herds and how private biosecurity incentives are affected by the structure of disease eradication polices are considered. How well disease control policies are targeted affects their effectiveness and may result in farmers substituting government testing and disease surveillance for private biosecurity. Numerical simulation results demonstrate that failing to account for feedbacks between the disease ecology and economic systems may overestimate the effectiveness of government disease control policies.

Keywords: bioeconomics, biosecurity, disease eradication, epidemiology, replicator dynamics

Suggested Citation

Gramig, Benjamin and Horan, Richard D., Jointly Determined Livestock Disease Dynamics and Decentralised Economic Behaviour (July 2011). Australian Journal of Agricultural and Resource Economics, Vol. 55, Issue 3, pp. 393-410, 2011, Available at SSRN: https://ssrn.com/abstract=1878957 or http://dx.doi.org/10.1111/j.1467-8489.2011.00543.x

Benjamin Gramig (Contact Author)

University of Illinois at Urbana-Champaign ( email )

United States

HOME PAGE: http://www.bengramig.com

Richard D. Horan

Michigan State University - Department of Agricultural Economics ( email )

303A Agriculture Hall
East Lansing, MI 48824
United States
517-355-1301 (Phone)
517-432-1800 (Fax)

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