The application of economics in animal health programmes: a practical guide.

Economic analysis is a valuable technique in the planning and management of animal health programmes at the national policy level and at the level of individual livestock enterprises. Considerable experience has now been accumulated in the adaptation of methods of economics to address decisions on disease control issues. Different methods are appropriate for endemic diseases, for diseases which occur intermittently as local outbreaks, and for diseases which have the potential to cause an epidemic. A guide to the selection of the most suitable method is provided. The information required for analysis at individual herd level is much simpler than that required for national policy decisions and funding decisions by international agencies; an outline of the requirements for each level of analysis is provided. Issues surrounding the degree of risk of different choices are examined, and the application of decision analysis to higher-risk choices is introduced. Ways in which difficulties and hazards can be overcome are suggested for those unfamiliar with the techniques. Finally, procedures to provide confidence in the results of evaluations through sensitivity analysis are explained.