Optimal Antimicrobial Use under Countervailing Externalities

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

SLU Authors

• Ahmed, Haseeb

  • Department of Clinical Sciences, Swedish University of Agricultural Sciences
    

Associated SLU-program

AMR: Bacteria


Sustainable Development Goals

SDG3 Good health and well-being


UKÄ Subject classification

Economics


Publication identifier

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

Permanent link to this page (URI)

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