An empirical model of optimal import phytosanitary inspection

Ilya V. Surkov, Alfons Oude Lansink () and Olaf van Kooten

No 21253, 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper presents an empirical model of optimal budget allocation for import inspection of imported commodities. In this model, the budget constrained inspecting Agency wants to minimize the expected pest costs related to import trade pathways. The model is applied to the problem of budget allocation for inspection of chrysanthemum cuttings imported to the Netherlands. The numerical results imply that under a budget constraint, resources should be first allocated for inspection of pathways with the greatest expected pest costs. Pathways with lower expected pest costs should receive less or no resources. The inspecting Agency has to trade off risks between inspected and non-inspected pathways.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 27
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea06:21253

DOI: 10.22004/ag.econ.21253

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