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Public Policy and Private Incentives for Livestock Disease Control
Author(s) -
Bicknell Kathryn B.,
Wilen James E.,
Howitt Richard E.
Publication year - 1999
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.00092
Subject(s) - incentive , livestock , public economics , disease , control (management) , profit (economics) , business , order (exchange) , disease control , economics , bovine tuberculosis , microbiology and biotechnology , tuberculosis , microeconomics , biology , medicine , finance , mycobacterium bovis , ecology , mycobacterium tuberculosis , management , pathology
This article presents a dynamic bioeconomic model of livestock disease control that is unique in its integration of disease dynamics, inter‐species interaction, control‐induced migration, and individual optimising behaviour. Examination of the first‐order conditions highlights why profit‐maximising producers cannot be expected to eradicate disease. Results from an empirical application of the model confirm that the current mix of policies to control bovine tuberculosis in New Zealand is achieving lower levels of prevalence than would prevail in the absence of a national strategy. These policies do, however, appear to remove some of the individual incentive to control disease.