| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Economies of Feedlot Scale, Biosecurity, Investment, and Endemic Livestock Disease
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| Autores: |
Hennessy, David A.
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| Data: |
2006-09-08
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| Ano: |
2006
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| Palavras-chave: |
Agricultural industrialization
Biosecurity
Inefficiency
Nash behavior
Overinvestment
Technology adoption
Livestock Production/Industries
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| Resumo: |
Infectious livestock disease creates externalities for proximate animal production enterprises. The distribution of production scale within a region should influence and be influenced by these disease externalities. Taking the distribution of the unit costs of stocking an animal as primitive, we show that an increase in the variance of these unit costs reduces consumer surplus. The effect on producer surplus, total surplus, and animal concentration across feedlots depends on the demand elasticity. A subsidy to smaller herds can reduce social welfare and immiserize the farm sector by increasing the extent of disease. While Nash behavior involves excessive stocking, disease effects can be such that aggregate output declines relative to first-best. Disease externalities can induce more adoption of a cost-reducing technology by larger herds so that animals become more concentrated across herds. For strategic reasons, excess overall adoption of the innovation may occur. Larger herds are also more likely to adopt biosecurity innovations, explaining why larger herds may be less diseased in equilibrium.
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| Tipo: |
Working or Discussion Paper
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| Idioma: |
Inglês
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| Identificador: |
23685
http://purl.umn.edu/18623
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| Editor: |
AgEcon Search
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| Relação: |
Iowa State University>Center for Agricultural and Rural Development>CARD Working Paper Series
CARD Working Paper 06-WP 433
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| Formato: |
31
application/pdf
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