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Research article - Peer-reviewed, 2021

Optimal Antimicrobial Use under Countervailing Externalities

Delmond, Anthony R.; Ahmed, Haseeb

Abstract

Over-or underprovision of antimicrobials under free-riding and resistance externalities can be economically important through their impacts on animal health, human health, and food security. This paper models antimicrobial use given disease dynamics with (i) free-riding incentives and (ii) antimicrobial resistance. Our results suggest a strong potential for overprovision of antimicrobials when ignoring resistance dynamics. Numerical simulation indicates an increase in the cost of disease management with increases in resistance levels. Policy implications are discussed in the context of animal health and disease-control subsidy programs in the developing world as well as unregulated sale of antimicrobials.

Keywords

antimicrobial resistance; free riding; livestock disease; smallholder production

Published in

Journal of Agricultural and Resource Economics
2021, volume: 46, number: 3, pages: 490-508
Publisher: WESTERN AGRICULTURAL ECONOMICS ASSOC

Authors' information

Delmond, Anthony R.
University of Tennessee
Swedish University of Agricultural Sciences, Department of Clinical Sciences

Sustainable Development Goals

SDG3 Good health and wellbeing

UKÄ Subject classification

Economics

Publication Identifiers

DOI: https://doi.org/10.22004/ag.econ.307456

URI (permanent link to this page)

https://res.slu.se/id/publ/113943