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Estimating the Value of an Early‐Warning System
Author(s) -
Roberts Michael J.,
Schimmelpfennig David,
Livingston Michael J.,
Ashley Elizabeth
Publication year - 2009
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1111/j.1467-9353.2009.01439.x
Subject(s) - value (mathematics) , warning system , business , economics , econometrics , statistics , computer science , mathematics , telecommunications
An early‐warning system generates economic value to the extent that it improves decision making. The value of the information hinges on the degree to which a timely response, aided by warnings, facilitates successful damage mitigation. USDA's Coordinated Framework for Soybean Rust includes a network of sentinel soybean plots and wild kudzu stands monitored by extension agents for the presence of soybean rust, a potentially recurring threat to the U.S. soybean crop since 2005. The linchpin in this early‐warning system is a website that provides near real‐time, county‐level information on the location of the disease. We consider factors that may influence information value.