Uncertainty, risk aversion, and risk management for agricultural producers
GianCarlo Moschini () and
Chapter 02 in Handbook of Agricultural Economics, 2001, vol. 1, Part 1, pp 88-153 from Elsevier
Uncertainty and risk are quintessential features of agricultural production. After a brief overview of the main sources of agricultural risk, we provide an exposition of expected utility theory and of the notion of risk aversion. This is followed by a basic analysis of agricultural production decisions under risk, including some comparative statics results from stylized models. Selected empirical topics are surveyed, with emphasis on risk analyses as they pertain to production decisions at the farm level. Risk management is then discussed, and a synthesis of hedging models is presented. We conclude with a detailed review of agricultural insurance, with emphasis on the moral hazard and adverse selection problems that arise in the context of crop insurance.
JEL-codes: Q00 (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (43) Track citations by RSS feed
Downloads: (external link)
http://www.sciencedirect.com/science/article/B7P5B ... 3e2ff71f5b361f252295
Full text for ScienceDirect subscribers only
Working Paper: Uncertainty, Risk Aversion, and Risk Management for Agricultural Producers (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:eee:hagchp:1-02
Access Statistics for this chapter
More chapters in Handbook of Agricultural Economics from Elsevier
Series data maintained by Dana Niculescu ().