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The spread of infectious disease among and between wild and domesticated animals has become a major problem worldwide. We analyze the socially optimal management of wildlife and livestock, including choices involving environmental habitat variables and on-farm biosecurity controls, when wildlife and livestock can spread an infectious disease to each other. The model is applied to the problem of bovine tuberculosis among Michigan white-tailed deer. The optimum is a cycle in which the disease remains endemic in the wildlife, but in which the cattle herd is depleted when the prevalence rate in deer grows too large.


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