Economic analysis of animal diseases and their control

Animal Health Economics is a relatively new discipline, which is progressively developing a solid framework of concepts, procedures, and data to support the decision-making process in optimizing animal health management. Research in this field primarily deals with three interrelated aspects: (1) quantifying the financial effects of animal disease, (2) developing methods for optimizing decisions when individual animals, herds or populations are affected, and (3) determining the costs and benefits of disease control measures. In the paper the four most common economic modelling techniques (i.e. partial budgeting, cost-benefit analysis, decision analysis, and systems simulation) are described and applied on three levels of veterinary decision making: the animal, herd, and national level. Outcomes so far are summarized, and shortcomings indicated and discussed. The importance of a close link between economics and epidemiology is stressed for future development, as well as the need and possibilities for an international exchange of models and procedures.