Evaluación ex-ante de un programa de sanidad animal: Un análisis de equilibrio general computable de la erradicación de la mosca de la bichera en Uruguay

The New World Screwworm (NWS) fly causes a parasitic disease that produces large losses in Uruguayan livestock farming - mainly due to the working hours devoted to its prevention and treatment and the death of sheep. In this paper, we apply a dynamic computable general equilibrium model to estimate the macroeconomic and sectoral effects of eradicating the NWS. The results show positive impacts on overall output and labor market indicators such as wages and employment. On the other hand, the appreciation of the real exchange rate generated by the increase in livestock exports has a negative impact on other tradable sectors of the Uruguayan economy. Besides, we consider three alternative financing sources for the additional government spending.