Bioeconomic Analysis of Pesticide Demand

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The ability of insects to develop resistance to specific pesticides affects pesticide demand. However, the affect of resistance on demand cannot be observed or measured. This analysis substitutes an expression for the unobserved resistance variable in a pesticide demand model and then illustrates the model's potential by estimating demand for DDT. To arrive at the expression characterizing the unobserved resistance variable a biological resistance model is constructed then incorporated into the dosage response curve. Resistance development is hypothesized to be directly dependent on cumulative pesticide use.

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