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Issues and strategies in ex-post evaluation of intervention
against animal disease outbreaks and spreads
Mohamadou Fadiga & Hikuepi Katjiuongua
Mainstreaming Livestock Value Chain Conference.
5-6 Nov. 2013. Accra, Ghana
Impacts of animal diseases

• Animal disease outbreaks: can be devastating

Direct costs
- Death of animals
-

Lower productivity – slow growth, reduced efficiency of input use

- Control costs

Indirect costs
-

Reduced access to markets
Long term macroeconomic effects
Effects of price changes on supply chain actors
Spillover effects such as effects on tourism
2
Impacts of animal disease
• Highly pathogenic avian influenza: Nigeria (2006/2008) 1.5 million
birds lost (747,000 culled)
• Foot and mouth disease: Botswana - trade ban led to $ 33 million
(USD) losses at processing level alone
• Tick & tick borne diseases: undermine livestock productivity
• Impacts differ by production system, coping & risk management
capacity of VC actors, state of veterinary service delivery

• Require costly interventions: culling, quarantine & movement
restrictions, and vaccinations…
• Important to evaluate animal disease intervention

3
Issues in ex post evaluation of animal disease outbreaks

Four key issues in ex post economic assessment of
intervention against animal disease outbreaks
Defining the counterfactual scenario
Accounting for the losses (under counterfactual)
Handling data uncertainty and specificity of
epidemiological data
Dealing with the issues of attribution

4
Issues in ex post evaluation of animal disease outbreaks

• Governments are generally risk averse with respect to animal
diseases
• Design intervention interventions to minimize losses in
expected social welfare
EW

i

p ( i )WD

i

[1 p( i )]WF

i

r( i )

• or some expected damage function
ED

i

DC ( i ) IC

i

• Measuring these losses accurately requires integrated
epidemiology and economic models
5
On the counterfactual scenario
• Probability of outbreak is a composite risk estimate
– A product of or risk of introduction, risk of spread, and mortality risk
– Defining the counterfactual risk is akin to answering the question about what
would have been the trajectory of the disease in the absence of intervention
– Use a combination of experimental, historical, participatory data on the
disease, etc…

•

Use total death relative to population at risk to derive mortality risk

• For risk of spread
– Develop an SI (susceptible-infected)model
– Data on transmission rate, incubation period, infectious period, and lapse
between depopulation and restocking are used to solve the differential
equations that illustrate the SI model

6
On the counterfactual scenario
Prevalence
50%

Endemic state

40%
30%

St
Ct
It
Rt

1 1

1

0

0

St 1
Ct 1

1
0

1 1
1

0
1 1

It 1
Rt 1

0
0
0

0

1

20%

Unstable epidemic

10%
0%
0

100

200

300

400

Day

Scenario
Spread

Risk Estimates

Mortality

Spread

Mortality

Composite

Burn-out

Low

0.13

0.01

0.0013

Burn-out

High

0.13

0.02

0.0026

Endemic

Low

0.27

0.01

0.0027

Endemic

High

0.27

0.02

0.0054
7
Use of counterfactuals and example from HPAI in Nigeria
Calculate expected welfare or
expected damage without the
intervention at various scenarios

Net Social Welfare Gain over 2006-2010
US $ Million

Analyse the net effect of risk
reduction on social welfare

110
88
66

Find the socially optimal level of risk
that justifies intervention

44
22
0
0%

Evaluate if eradication makes sense
economically

20%

40%

60%

80%

100%

Risk Reduction Level

8
Stochastic approach
• Characteristics of the data
– Underlying uncertainty (multiple sources, measurement errors, etc...)
– Disease transmission is stochastic
– Not all susceptible subjects in contact with infectious ones would
catch the disease
– Necessity to test the validity of results through sensitivity analysis

• Stochastic simulation addresses all these points at once
– Use the collected and/or derived data on spread and mortality to
simulate their distribution
– Solve for the key output variables using random draws from the
distribution of risk parameters
– Generate a distribution of the key output variables
– Conduct a probabilistic sensitivity analysis on the key output variables

9
Stochastic simulation

Examples of Stochastic Results

Simulated Risks of HPAI

Welfare

Simulated Risk of Spread
18%

Losses

Frequency

15%
12%

Disease Cost

Mean

147.44

144.97

St. Deviation

291.93

115.99

Lower 95%

121.85

134.80

Upper 95%

173.03

155.14

9%
6%
3%
0%
0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

Risk of Spread
Simulated Mortality Risk

Sensitivity analysis on welfare losses

53%
1.0

Probability

Frequency

45%
38%
30%
23%
15%
8%

0.8
0.6
0.4
0.2

0%
0.00

0.01

0.03

0.04

0.05

0.07

Mortality Risk

0.08

0.09

0.0
0

500

1,000

1,500

Social Welfare Effects

2,000

10
Issues of attribution in intervention
• Ideal Scenario: randomization and use RCTs
• But scope for randomization nearly zero in case animal disease
outbreak – responding to a crisis. Alternative approaches exist but
depend on unit of analysis
• Other factors influence disease spread and the effectiveness of the
intervention (e.g. feed, water availability, agent behavior etc.)
• These make attribution of the intervention in a probabilistic sense
difficult

11
Issues of attribution in intervention
• Necessity to use qualitative analysis in addition to quantitative assessment
targeting indicators through key informant interview about what could
have happened in the absence of the disease
• Use participatory epidemiology to capture indigenous knowledge about
the disease effects
• Pay attention to the timing of intervention and careful documentation of
all inputs used in the intervention and their sources
• Use past information about losses that coincided with the disease
outbreak to gain insights how the intervention may have potentially
affected the disease dynamics
• Overall: With that one could plausibly attribute observed change in
disease trajectory to the intervention that was carried out
12
Accounting for losses

• Customary to focus on total cost (both direct and indirect)
• But when calculating total cost it is important to focus on
avoidable losses – can overestimate of cost savings
• In other words not all risk will be removed as a result of the
intervention

• Doing that would yield more reasonable incremental benefits
and incremental net benefits that accrued because of the
intervention

13
Thank you

14

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12 fadiga katjiuongua_expost_evaluation_disease_intervention

  • 1. Issues and strategies in ex-post evaluation of intervention against animal disease outbreaks and spreads Mohamadou Fadiga & Hikuepi Katjiuongua Mainstreaming Livestock Value Chain Conference. 5-6 Nov. 2013. Accra, Ghana
  • 2. Impacts of animal diseases • Animal disease outbreaks: can be devastating Direct costs - Death of animals - Lower productivity – slow growth, reduced efficiency of input use - Control costs Indirect costs - Reduced access to markets Long term macroeconomic effects Effects of price changes on supply chain actors Spillover effects such as effects on tourism 2
  • 3. Impacts of animal disease • Highly pathogenic avian influenza: Nigeria (2006/2008) 1.5 million birds lost (747,000 culled) • Foot and mouth disease: Botswana - trade ban led to $ 33 million (USD) losses at processing level alone • Tick & tick borne diseases: undermine livestock productivity • Impacts differ by production system, coping & risk management capacity of VC actors, state of veterinary service delivery • Require costly interventions: culling, quarantine & movement restrictions, and vaccinations… • Important to evaluate animal disease intervention 3
  • 4. Issues in ex post evaluation of animal disease outbreaks Four key issues in ex post economic assessment of intervention against animal disease outbreaks Defining the counterfactual scenario Accounting for the losses (under counterfactual) Handling data uncertainty and specificity of epidemiological data Dealing with the issues of attribution 4
  • 5. Issues in ex post evaluation of animal disease outbreaks • Governments are generally risk averse with respect to animal diseases • Design intervention interventions to minimize losses in expected social welfare EW i p ( i )WD i [1 p( i )]WF i r( i ) • or some expected damage function ED i DC ( i ) IC i • Measuring these losses accurately requires integrated epidemiology and economic models 5
  • 6. On the counterfactual scenario • Probability of outbreak is a composite risk estimate – A product of or risk of introduction, risk of spread, and mortality risk – Defining the counterfactual risk is akin to answering the question about what would have been the trajectory of the disease in the absence of intervention – Use a combination of experimental, historical, participatory data on the disease, etc… • Use total death relative to population at risk to derive mortality risk • For risk of spread – Develop an SI (susceptible-infected)model – Data on transmission rate, incubation period, infectious period, and lapse between depopulation and restocking are used to solve the differential equations that illustrate the SI model 6
  • 7. On the counterfactual scenario Prevalence 50% Endemic state 40% 30% St Ct It Rt 1 1 1 0 0 St 1 Ct 1 1 0 1 1 1 0 1 1 It 1 Rt 1 0 0 0 0 1 20% Unstable epidemic 10% 0% 0 100 200 300 400 Day Scenario Spread Risk Estimates Mortality Spread Mortality Composite Burn-out Low 0.13 0.01 0.0013 Burn-out High 0.13 0.02 0.0026 Endemic Low 0.27 0.01 0.0027 Endemic High 0.27 0.02 0.0054 7
  • 8. Use of counterfactuals and example from HPAI in Nigeria Calculate expected welfare or expected damage without the intervention at various scenarios Net Social Welfare Gain over 2006-2010 US $ Million Analyse the net effect of risk reduction on social welfare 110 88 66 Find the socially optimal level of risk that justifies intervention 44 22 0 0% Evaluate if eradication makes sense economically 20% 40% 60% 80% 100% Risk Reduction Level 8
  • 9. Stochastic approach • Characteristics of the data – Underlying uncertainty (multiple sources, measurement errors, etc...) – Disease transmission is stochastic – Not all susceptible subjects in contact with infectious ones would catch the disease – Necessity to test the validity of results through sensitivity analysis • Stochastic simulation addresses all these points at once – Use the collected and/or derived data on spread and mortality to simulate their distribution – Solve for the key output variables using random draws from the distribution of risk parameters – Generate a distribution of the key output variables – Conduct a probabilistic sensitivity analysis on the key output variables 9
  • 10. Stochastic simulation Examples of Stochastic Results Simulated Risks of HPAI Welfare Simulated Risk of Spread 18% Losses Frequency 15% 12% Disease Cost Mean 147.44 144.97 St. Deviation 291.93 115.99 Lower 95% 121.85 134.80 Upper 95% 173.03 155.14 9% 6% 3% 0% 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 Risk of Spread Simulated Mortality Risk Sensitivity analysis on welfare losses 53% 1.0 Probability Frequency 45% 38% 30% 23% 15% 8% 0.8 0.6 0.4 0.2 0% 0.00 0.01 0.03 0.04 0.05 0.07 Mortality Risk 0.08 0.09 0.0 0 500 1,000 1,500 Social Welfare Effects 2,000 10
  • 11. Issues of attribution in intervention • Ideal Scenario: randomization and use RCTs • But scope for randomization nearly zero in case animal disease outbreak – responding to a crisis. Alternative approaches exist but depend on unit of analysis • Other factors influence disease spread and the effectiveness of the intervention (e.g. feed, water availability, agent behavior etc.) • These make attribution of the intervention in a probabilistic sense difficult 11
  • 12. Issues of attribution in intervention • Necessity to use qualitative analysis in addition to quantitative assessment targeting indicators through key informant interview about what could have happened in the absence of the disease • Use participatory epidemiology to capture indigenous knowledge about the disease effects • Pay attention to the timing of intervention and careful documentation of all inputs used in the intervention and their sources • Use past information about losses that coincided with the disease outbreak to gain insights how the intervention may have potentially affected the disease dynamics • Overall: With that one could plausibly attribute observed change in disease trajectory to the intervention that was carried out 12
  • 13. Accounting for losses • Customary to focus on total cost (both direct and indirect) • But when calculating total cost it is important to focus on avoidable losses – can overestimate of cost savings • In other words not all risk will be removed as a result of the intervention • Doing that would yield more reasonable incremental benefits and incremental net benefits that accrued because of the intervention 13