Finance Discipline Group
UTS Business School
University of Technology, Sydney

Working Paper Series

Title:
An Economic Analysis of Genetic Improvement Within a Commercial Livestock Population
Author(s): Max Stevenson
Date of publication: March 1993
Working paper number: 26
Abstract:
This study builds and analyses a dynamic economic model which relates the cost of using a genetically superior sire from outside a base herd to increase the levels of genetic merit of the breeding females and their progeny within that herd. The questions of interest are the optimal length to time over the time horizon to use the genetically superior sire, and with how many females should he be at any different time? If the value of a unit of cost of using the genetically superior sire is small enough then it is optimal to mate him with all the herd for the whole time horizon. At the other extreme, if the unit cost is large enough, then it is not optimal to use him to mate with any females for any time. For other values of unit cost, the optimal solution is either a bang-bang solution, where the sire is mated with all the females for part of the time and then none, or a singular solution which involves mating the sire with a fraction of the female herd after mating him, firstly with all of them, and then finally with none.
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