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Abstract
This paper examines the role of market
coordination and market distortions caused by a
hypothetical FMD outbreak in the Finnish pig sector. By
using stochastic dynamic programming, it simulates the
consequences of two outbreak scenarios (large vs. small)
under two distinct market regimes (competitive market
vs. monopoly in the domestic supply). Simulated losses
depend on the magnitude of outbreak and expected
duration of possible turndown of meat exports, whereas
market regime has a limited impact.