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Analysing the Economic Impacts of a Plant Disease Incursion Using a General Equilibrium Approach

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  • Wittwer, Glyn
  • McKirdy, Simon
  • Wilson, Ryan

Abstract

This study uses a dynamic multi-regional computable general equilibrium (CGE) model to estimate the micro- and macroeconomic effects of a hypothetical disease outbreak. The extent of the incursion, the impact of the disease on plant yields, the response of buyers, the costs of eradication and the time path of the scenario contribute to outcomes at the industry, regional, state and national levels. We also decompose the contribution of these individual direct effects to the overall impact of the disease. This may provide some guidance as to areas for priority in attempting to eradicate or minimise the impacts of a disease. The study also introduces a theory of dynamic regional labour adjustment in which economic events may lead to both real wage differentials and worker migration between regions.

Suggested Citation

  • Wittwer, Glyn & McKirdy, Simon & Wilson, Ryan, 2005. "Analysing the Economic Impacts of a Plant Disease Incursion Using a General Equilibrium Approach," Conference papers 331394, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331394
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    File URL: https://ageconsearch.umn.edu/record/331394/files/2083.pdf
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    References listed on IDEAS

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    1. Xueyan Zhao & Kym Anderson & Glyn Wittwer, 2019. "Who Gains from Australian Generic Wine Promotion and R&D?," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 9, pages 189-223, World Scientific Publishing Co. Pte. Ltd..
    2. Philip D. Adams & Mark Horridge & Glyn Wittwer, 2003. "MMRF-GREEN: A Dynamic Multi-Regional Applied General Equilibrium Model of the Australian Economy, Based on the MMR and MONASH Models," Centre of Policy Studies/IMPACT Centre Working Papers g-140, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. McFarland, J. R. & Reilly, J. M. & Herzog, H. J., 2004. "Representing energy technologies in top-down economic models using bottom-up information," Energy Economics, Elsevier, vol. 26(4), pages 685-707, July.
    4. Naqvi, Farzana & Peter, Matthew W, 1996. "A Multiregional, Multisectoral Model of the Australian Economy with an Illustrative Application," Australian Economic Papers, Wiley Blackwell, vol. 35(66), pages 94-113, June.
    5. Peter B. Dixon & Maureen T. Rimmer, 2003. "State-level Dynamic CGE Modeling for Forecasting and Policy Analysis," Centre of Policy Studies/IMPACT Centre Working Papers ip-82, Victoria University, Centre of Policy Studies/IMPACT Centre.
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    Cited by:

    1. David C. Cook & Rob W. Fraser & Jeffrey K. Waage & Matthew B. Thomas, 2009. "Prioritising Biosecurity Investment between Protecting Agricultural and Environmental Systems," Studies in Economics 0908, School of Economics, University of Kent.
    2. Siddiqui, Rizwana, 2006. "Modelling Gender Dimensions of the Impact Of Economic Reforms in Pakistan," Conference papers 331468, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Jayatilleke S. Bandara & Athula Naranpanawa, 2007. "The Economic Effects of the Asian Tsunami on the ‘Tear Drop in the Indian Ocean’," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 8(1), pages 65-85, January.

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    More about this item

    Keywords

    Research Methods/ Statistical Methods; Crop Production/Industries;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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