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The economic impacts of a ban on subtherapeutic antibiotics in swine production
Author(s) -
Wade Mark A.,
Barkley Andrew P.
Publication year - 1992
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(199203)8:2<93::aid-agr2720080202>3.0.co;2-9
Subject(s) - per capita , economic surplus , production (economics) , economics , price elasticity of demand , supply and demand , consumer demand , agricultural economics , natural resource economics , microeconomics , market economy , environmental health , medicine , population , welfare
The impacts of antibiotic use in swine production on production costs and human health are described. Pork supply and demand functions are specified and estimated, and elasticity estimates are then utilized to calculate consumer and producer surpluses for the retail pork market. The impacts of a ban on subtherapeutic antibiotics on both consumers and producers are calculated. Given supply and demand elasticity estimates and assumptions regarding the market impacts of such a ban, producer surplus would increase by $6.97 million and consumer surplus would increase by $6.19 million. These changes are small on a per capita basis.