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Estimating the State-by-State Economic Impacts of a Foot-and-Mouth Disease Attack

Author

Listed:
  • Bumsoo Lee
  • Jiyoung Park
  • Peter Gordon
  • James E. Moore II
  • Harry W. Richardson

Abstract

The agricultural sector is highly vulnerable to bioterrorism attacks with the potential for severe economic consequences. This article presents estimates of state-by-state total economic impacts of a hypothetical agroterrorism attack that uses foot-and-mouth disease (FMD) pathogens, which is one of the most contagious animal diseases and can be easily weaponized. The authors estimate the economic impacts across the U.S. states by applying the National Interstate Economic Model (NIEMO), a multiregional input output (MRIO) model. Total economic impacts range from $23 billion to $34 billion. The overwhelming sources of the losses are due to domestic and international demand cuts. The results of this research highlight the point that the economic impacts are nationwide, regardless of the location of the attack because of large-scale export losses.

Suggested Citation

  • Bumsoo Lee & Jiyoung Park & Peter Gordon & James E. Moore II & Harry W. Richardson, 2012. "Estimating the State-by-State Economic Impacts of a Foot-and-Mouth Disease Attack," International Regional Science Review, , vol. 35(1), pages 26-47, January.
    • Handle: RePEc:sae:inrsre:v:35:y:2012:i:1:p:26-47
    DOI: 10.1177/0160017610390939
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    References listed on IDEAS

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    1. Harry W. Richardson & Peter Gordon & James E. Moore & Jiyoung Park & Qisheng Pan & Soojung Kim, 2007. "Tourism and Terrorism: The National and Interregional Economic Impacts of Attacks on Major US Theme Parks," Chapters, in: Harry W Richardson & Peter Gordon & James E. Moore II (ed.), The Economic Costs and Consequences of Terrorism, chapter 12, Edward Elgar Publishing.
    2. Joel Slemrod & Shlomo Yitzhaki, 1996. "The Costs of Taxation and the Marginal Efficiency Cost of Funds," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 172-198, March.
    3. Tran-Nam, Binh & Evans, Chris & Walpole, Michael & Ritchie, Katherine, 2000. "Tax Compliance Costs: Research Methodology and Empirical Evidence from Australia," National Tax Journal, National Tax Association, vol. 53(n. 2), pages 229-52, June.
    4. Tran-Nam, Binh & Evans, Chris & Walpole, Michael & Ritchie, Katherine, 2000. "Tax Compliance Costs: Research Methodology and Empirical Evidence From Australia," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(2), pages 229-252, June.
    5. Paul Caskie & John Davis & Joan Moss, 1999. "The economic impact of BSE: a regional perspective," Applied Economics, Taylor & Francis Journals, vol. 31(12), pages 1623-1630.
    6. Sunstein, Cass R, 2003. "Terrorism and Probability Neglect," Journal of Risk and Uncertainty, Springer, vol. 26(2-3), pages 121-136, March-May.
    7. 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.
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    Cited by:

    1. Rohn, Eli & Erez, Gil, 2013. "A framework for agro-terrorism intentions detection using overt data sources," Technological Forecasting and Social Change, Elsevier, vol. 80(9), pages 1877-1884.
    2. 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.
    3. Kim, Man-Keun & Tejeda, Hernan, 2018. "Implicit Cost of the 2010 Foot-and-Mouth Disease in Korea," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 120(3), December.

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