Economics

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Author(s): Gé B.C. Backus, Robert P. King
Publication Date: January 1, 2008
Reference: European Review of Agricultural Economics Vol 35 (4) (2008) pp. 547–562
Country: Netherlands

Summary:

This paper presents a unified analysis of dynamic producer incentive systems for
Salmonella control in primary production and slaughter plant investments in Salmonella
control measures. We identify optimal incentive system parameters and cost-effective
control strategies for achieving various levels of Salmonella prevalence. We compare
the performance measures of the combined plant-level control and producer incentive
system with results obtained under a producer incentive system only. The combined
system allocates control effort among producers and the slaughter plant, resulting in
25–83 per cent lower expected total control cost for a wide range of threshold values.

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