Specification of spatial-dynamic externalities and implications for strategic behavior in disease control

Shady S. Atallah, Miguel I. Gömez, Jon M. Conrad

Research output: Contribution to journalArticlepeer-review

Abstract

We propose a novel, distance- and density- dependent specification of externalities that captures spatial dynamics within and between neighboring land parcels. We use this specification to model the short- and long-distance diffusion and control of an infectious disease in two privately owned and ecologically connected vineyards. Using computational experiments to generate individual and aggregate payoffs, our results suggest that ignoring the withinparcel spatial dynamics in the model may overestimate the social cost of an externality. We find that increased resource value heterogeneity, defined as the difference in grape prices received by the two vineyards, has a detrimental impact on aggregate payoffs.

Original languageEnglish (US)
Pages (from-to)209-229
Number of pages21
JournalLand Economics
Volume93
Issue number2
DOIs
StatePublished - May 1 2017
Externally publishedYes

ASJC Scopus subject areas

  • Environmental Science (miscellaneous)
  • Economics and Econometrics

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