[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/eaae11/114793.html
   My bibliography  Save this paper

Livestock epidemics and catastrophic risk management: State of the art and prospects on economic dynamics

Author

Listed:
  • Rault, Arnaud
  • Krebs, Stephane
Abstract
The economic consequences of livestock epidemics have been long studied for purposes of estimating the costs of the veterinary measures. In this paper, we show that this catastrophic risk may have wide market consequences, and that the risk management systems are quite limited to compensate long term impacts in the European context of growing trade. Through a detailed literature review we present the main developments of the economic literature aiming to highlight the economic consequences of animal epidemics such as Foot and Mouth Disease. We acknowledge that a very few studies have focused on the economic dynamics and on the long run effects occurring after an epidemic disease outbreak. We discuss the appropriateness of a dynamic approach to reveal that the de-structuring of the livestock markets affects the production dynamics as well as the whole agricultural sphere, whose financial implications remain poorly studied. In addition, we highlight the importance of taking into account these phenomena for the development of risk management systems, and we emphasize the growing interest of a dynamic Computable General Equilibrium approach.

Suggested Citation

  • Rault, Arnaud & Krebs, Stephane, 2011. "Livestock epidemics and catastrophic risk management: State of the art and prospects on economic dynamics," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114793, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:114793
    DOI: 10.22004/ag.econ.114793
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/114793/files/Rault_Arnaud_420.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.114793?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. M.-J. J. Mangen & A. M. Burrell, 2003. "Who gains, who loses? Welfare effects of classical swine fever epidemics in the Netherlands," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(2), pages 125-154, June.
    2. Olivier Mahul & Bernard Durand, 2000. "Simulated economic consequences of foot-and-mouth disease epidemics and their public control in France," Post-Print hal-01952105, HAL.
    3. Zhao, Zishun & Wahl, Thomas I. & Marsh, Thomas L., 2006. "Invasive Species Management: Foot-and-Mouth Disease in the U.S. Beef Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(1), pages 98-115, April.
    4. Mahul, Olivier & Gohin, Alexandre, 1999. "Irreversible Decision Making in Contagious Animal Disease Control under Uncertainty: An Illustration Using FMD in Brittany," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(1), pages 39-58, March.
    5. Vedenov, Dmitry V. & Epperson, James E. & Barnett, Barry J., 2006. "Designing Catastrophe Bonds to Securitize Systemic Risks in Agriculture: The Case of Georgia Cotton," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(2), pages 1-21, August.
    6. Glynn T. Tonsor & Ted C. Schroeder & Joost M. E. Pennings, 2009. "Factors Impacting Food Safety Risk Perceptions," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 625-644, September.
    7. Elbakidze, Levan & McCarl, Bruce A., 2006. "Animal Disease Pre-Event Preparedness versus Post-Event Response: When Is It Economic to Protect?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(2), pages 327-336, August.
    8. Dimitrios Panagiotou & Azzeddine M. Azzam, 2010. "Trade Bans, Imperfect Competition, and Welfare: BSE and the U.S. Beef Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 109-129, March.
    9. Ronnie O'Toole & Alan Matthews & Michael Mulvey, 2002. "Impact of the 2001 Foot and Mouth Outbreak on the Irish Economy," Trinity Economics Papers 20028, Trinity College Dublin, Department of Economics.
    10. Mario Mazzocchi & Alexandra Lobb & W. Bruce Traill & Alessio Cavicchi, 2008. "Food Scares and Trust: A European Study," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 2-24, February.
    11. Moonsoo Park & Yanhong H. Jin & David A. Bessler, 2008. "The impacts of animal disease crises on the Korean meat market," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 183-195, September.
    12. Phelippe-Guinvarc'h, Martial V. & Cordier, Jean E., 2006. "A private management strategy for the crop yield insurer: A theoretical approach and tests," Insurance: Mathematics and Economics, Elsevier, vol. 39(1), pages 35-46, August.
    13. Olivier Mahul & Alexandre Gohin, 1999. "Irreversible decision making in contagious animal disease control under uncertainty : an illustration using FMD in Brittany," Post-Print hal-01952087, HAL.
    14. Olivier Mahul, 2001. "Managing Catastrophic Risk Through Insurance and Securitization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 656-661.
    15. Karl M. Rich & Alex Winter-Nelson, 2007. "An Integrated Epidemiological-Economic Analysis of Foot and Mouth Disease: Applications to the Southern Cone of South America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 682-697.
    16. Chavas, Jean-Paul, 1999. "On The Economic Rationality Of Market Participants: The Case Of Expectations In The U.S. Pork Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-19, July.
    17. Olivier Mahul, 2001. "Managing catastrophic risk through insurance and securitization," Post-Print hal-01952103, HAL.
    18. Pendell, Dustin L. & Leatherman, John & Schroeder, Ted C. & Alward, Gregory S., 2007. "The Economic Impacts of a Foot-And-Mouth Disease Outbreak: A Regional Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(s1), pages 19-33, October.
    19. Benjamin M. Gramig & Richard D. Horan & Christopher A. Wolf, 2008. "Livestock Disease Indemnity Design When Moral Hazard Is Followed by Adverse Selection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 627-641.
    20. Devadoss, Stephen & Holland, David W. & Stodick, Leroy & Ghosh, Joydeep, 2006. "A General Equilibrium Analysis of Foreign and Domestic Demand Shocks Arising from Mad Cow Disease in the United States," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(2), pages 1-13, August.
    21. Jerry R. Skees & Barry J. Barnett, 1999. "Conceptual and Practical Considerations for Sharing Catastrophic/Systemic Risks," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(2), pages 424-441.
    22. Mario J. Miranda & Joseph W. Glauber, 1997. "Systemic Risk, Reinsurance, and the Failure of Crop Insurance Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 206-215.
    23. Bocker, Andreas & Hanf, Claus-Hennig, 2000. "Confidence lost and -- partially -- regained: consumer response to food scares," Journal of Economic Behavior & Organization, Elsevier, vol. 43(4), pages 471-485, December.
    24. Olivier Mahul, 2001. "Managing catastrophic risk through insurance and securitization," Post-Print hal-01952101, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arnaud Rault & Stéphane Krebs, 2011. "Catastrophic risk and risk management, what do we know about livestock epidemics? State of the art and prospects," Working Papers SMART 11-05, INRAE UMR SMART.
    2. Alexandre Cordier & Jean Gohin & Stephane Krebs & Arnaud Rault, 2013. "Dynamic Impacts of a Catastrophic Production Event: The Foot‐and‐Mouth Disease Case," Risk Analysis, John Wiley & Sons, vol. 33(3), pages 480-492, March.
    3. Zhiwei Shen & Martin Odening, 2013. "Coping with systemic risk in index-based crop insurance," Agricultural Economics, International Association of Agricultural Economists, vol. 44(1), pages 1-13, January.
    4. Gramig, Benjamin M. & Horan, Richard D., 2011. "Jointly determined livestock disease dynamics and decentralised economic behavior," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 1-18, September.
    5. Xu, Wei & Odening, Martin & Musshoff, Oliver, 2008. "Optimal Design of Weather Bonds," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6781, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Tong Wang & David A. Hennessy, 2015. "Strategic Interactions Among Private and Public Efforts When Preventing and Stamping Out a Highly Infectious Animal Disease," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(2), pages 435-451.
    7. repec:bas:econth:y:2013:i:1:p:62-83 is not listed on IDEAS
    8. repec:bas:econth:y:2013:i:1:p:84-102 is not listed on IDEAS
    9. Zulauf, Carl R., 2002. "Droughts And Farm Policy," Western Economics Forum, Western Agricultural Economics Association, vol. 1(2), pages 1-5.
    10. Kobayashi, Mimako & Melkonyan, Tigran A., 2011. "Strategic Incentives in Biosecurity Actions: Theoretical and Empirical Analyses," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-21, July.
    11. Kim, Man-keun, 2015. "Supply Driven Input-Output Analysis: Case of 2010-2011 Foot-and-Mouth Disease in Korea," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 38(2), pages 1-16, June.
    12. Levan Elbakidze & Linda Highfield & Michael Ward & Bruce A. McCarl & Bo Norby, 2009. "Economics Analysis of Mitigation Strategies for FMD Introduction in Highly Concentrated Animal Feeding Regions," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 931-950, December.
    13. Zhou, Li & Turvey, Calum & Hu, Wuyang & Ying, Ruiyao, 2015. "Fear and Trust: How Risk Perceptions of Avian Influenza Affect the Demand for Chicken," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 202077, Agricultural and Applied Economics Association.
    14. Enjolras, Geoffroy & Kast, Robert, 2007. "Using participating and financial contracts to insure catastrophe risk: Implications for crop risk management," 101st Seminar, July 5-6, 2007, Berlin Germany 9268, European Association of Agricultural Economists.
    15. Longworth, Natasha & Jongeneel, Roelof A. & Saatkamp, H.W. & Huirne, Ruud B.M., 2008. "Is prevention better than cure? An empirical investigation for the case of Avian Influenza," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44200, European Association of Agricultural Economists.
    16. Gohin, Alexandre & Rault, Arnaud, 2012. "Assessing the economic costs of an outbreak of Foot and Mouth Disease on Brittany: A dynamic computable general equilibrium approach," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122438, European Association of Agricultural Economists.
    17. Gohin, Alexandre & Rault, Arnaud, 2013. "Assessing the economic costs of a foot and mouth disease outbreak on Brittany: A dynamic computable general equilibrium analysis," Food Policy, Elsevier, vol. 39(C), pages 97-107.
    18. Mangen, M. -J. J. & Burrell, A. M. & Mourits, M. C. M., 2004. "Epidemiological and economic modelling of classical swine fever: application to the 1997/1998 Dutch epidemic," Agricultural Systems, Elsevier, vol. 81(1), pages 37-54, July.
    19. Boisvert, Richard N. & Kay, David & Turvey, Calum G., 2012. "Macroeconomic costs to large scale disruptions of food production: The case of foot- and-mouth disease in the United States," Economic Modelling, Elsevier, vol. 29(5), pages 1921-1930.
    20. Zhou, Li & Turvey, Calum G. & Hu, Wuyang & Ying, Ruiyao, 2016. "Fear and trust: How risk perceptions of avian influenza affect Chinese consumers’ demand for chicken," China Economic Review, Elsevier, vol. 40(C), pages 91-104.
    21. Gohin, Alexandre & Rault, Arnaud, 2012. "Assessing the economic costs of an outbreak of Foot and Mouth Disease on Brittany: A dynamic computable general equilibrium," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134712, Agricultural Economics Society.
    22. David A. Hennessy, 2007. "Behavioral Incentives, Equilibrium Endemic Disease, and Health Management Policy for Farmed Animals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 698-711.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eaae11:114793. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.