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  2. Abstract

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.

  1. An earlier version of this article was presented at the 42nd Annual Conference of the Australian Agricultural and Resource Economics Society, held in Armidale, 19–21 January 1998. This article was funded in part by a Fulbright Grant. Thanks are due to Bruce Warburton, who provided data for the estimation of the harvest function for possums, Dr Kevin Crews, who provided data to validate model output and anonymous referees for helpful comments on earlier drafts.