Agricultural inputs can create negative externalities. For risk averting agents, risk will alter production decisions while the existence of institutions to insure against adverse states of nature will likely restore decisions toward levels under risk neutrality. In this paper, conditions are...

This chapter studies second-best models of nutritional externalities, credit, and incomplete markets for risk, developing implications for welfare-improving government policy using primitive economic building blocks. Using a simple model of altruism wherein the rich obtain utility from the...