Economics

Readings

• Dijkhuizen AA and Morris RS (1997) Animal Health Economics: Principles and Applications. Post Graduate Foundation in Veterinary Science, University of Sydney. Chapters 1 - 4.
• Thrusfield M (2005) Veterinary Epidemiology. Blackwell Science, London. Chapter 20 (economics).
• Pfeiffer DU (1997) Decision making and risk analysis. In: Ruppanner R (editor) Risk Analysis and Animal Health - A Course Manual. International Training Course, Dübendorf, Switzerland, July 13 - 18, 1997, pp 861 - 877.

Presentations

• Partial farm budgeting.
• Gross margins analysis.
• Decision trees and pay-off tables.
• Cost benefit analysis and cost effectiveness analysis.
• Sensitivity analysis.

Exercises

1. Choose a management situation on a farm and as a group work out a partial farm budget for a particular change.

2. Choose an animal disease and as a group work through a pay-off table or decision tree for different treatment options.

3. Exercise: When is coronary angiography required in aortic valve replacement?

Example examination questions

1. Using examples write brief notes on the situations in which you would use partial farm budgeting and pay-off tables, the information you would need for each and the way you would interpret the results (2003 written).

2. Using examples write brief notes on the characteristics, application and limitations of cost-benefit analysis (2005 written).

Additional reading

• Stevenson M, Frey B, Morris R (1996) Therapeutic decision making in practice: economics made easy. In: Australian Association of Pig Veterinarians - New Zealand Pig Veterinary Society 2nd Pan Pacific Programme, Christchurch, New Zealand, 1996, pp. 57 - 64.
• Norton S, Groenendaal H, Heuer C (2005) Simulating control strategies for Johne's Disease on New Zealand dairy farms: effects on the prevalence and economic impact of disease. In: Proceedings of the Food Safety and Biosecurity and Epidemiology Branches of the New Zealand Veterinary Association. pp. 193 - 204.
• Swinkels JM, Zadoks RN, Hogeveen H (2005) Use of partial budgeting to determine the economic benefits of antibiotic treatment during lactation of chronic subclinical mastitis caused by Staphylococcus aureus. In: Hogeveen H (editor) Mastitis in Dairy Production - Current Knowledge and Future Solutions, Culinary and Hospitality Industry Publications Services. pp. 217 - 223.
• Otte MJ, Chilonda P (2000) Animal Health Economics: An Introduction. Food and Agriculture Organization of the United Nations.