CAN FREE-RIDING BE BENEFICIAL? OPTIMAL ANTIMICROBIAL USE UNDER FREE-RIDING AND RESISTANCE EXTERNALITIES

Anthony Delmond and Haseeb Ahmed ()
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Haseeb Ahmed: Washington State University, https://students.ses.wsu.edu/haseeb-ahmed/

No 2018-2, Working Papers from School of Economic Sciences, Washington State University

Abstract: Over- or under-provision of antimicrobials in the livestock sector can be economically important in terms of livestock health, disease introduction and spread, and future costs of disease therapy. This paper examines optimal antimicrobial use under free-riding and resistance externalities in the context of small-holder farm households in developing countries, which are an important demographic in global food production. We first develop a model with free-riding incentives that elucidates the effects of free-riding on antimicrobial use given disease dynamics. We then add antimicrobial resistance as a dynamic constraint and compare the two models, examining several cases conditional on the extent of the aforementioned externalities. Our model suggests a strong potential for over-provision of antimicrobials when ignoring resistance dynamics. Policy implications are discussed in light of the animal health and disease control subsidy programs of the developing world as well as unregulated antimicrobial sales and use.

Keywords: Antimicrobials; antibiotic resistance; free ridership; livestock farming; animal health (search for similar items in EconPapers)
JEL-codes: I15 O13 Q18 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2018-01-18
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