Insurance premiums and GM traits

Elizabeth Nolan and Paulo Santos

No 125942, 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists

Abstract: An argument in favor of the development of genetically modified (GM) hybrids is that their presence is considered to be risk decreasing., and hence, insurance premiums for US corn growers who plant approved hybrids have been reduced. In this study we investigate, using a large set of experimental data, whether the presence in a corn hybrid of various combinations of GM traits is likely to affect production variability and downside risk. We estimate a heteroskedastic production function that allows for the variance of yield to change with the level of inputs, and use the residuals of the mean function to estimate the marginal effect of each input on variance and skewness of yield. The results show that the presence of most combinations of GM traits leads to an increase in both yield variability and downside risk.

Keywords: Production Economics; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 36
Date: 2012
New Economics Papers: this item is included in nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/125942/files/N ... cted_Paper_16932.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae12:125942

DOI: 10.22004/ag.econ.125942

Access Statistics for this paper

More papers in 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().