Errors in traceability can significantly impact the moral hazard associated with producing safe food. The effect of moral hazard depends on the proportion of unsafe food costs that can be allocated to the responsible producer, which depends on the efficiency of the traceability system. In this...

Private food safety standards (PFSS) are widely adopted by firms in the agri-food system, as they meet an increasing consumer demand for safety and quality. Yet, recent economic literature found that PFSS might serve other purposes than just ensuring food safety. Our paper contributes to this...

We reviewed some moral hazard (MH) models applied to agri-environmental policies and identified the main methodological aspects of the literature on this topics. Imperfect vs incomplete monitoring , static vs dynamic and single vs multiple agents models are the main lines along which the...

In this paper we develop an analytical framework for the estimation of the structural model parameters of an incentive contract under moral hazard with heterogeneous agents. Using micro level data on swine production contract settlements, we confirm that contract farmers are heterogenous with...

This paper describes an interdisciplinary research project carried out on behalf of the Federal Ministry of Consumer Protection, Food and Agriculture. The project combines the knowledge of food experts with decision-orientated approaches from microeconomics and the social sciences. It examines...

Several theoretical and empirical models have been developed to examine how risk aversion affects compliance with agri-environmental schemes under asymmetric information and uncertainty. However, none has examined the case where the level of compliance is a continuous variable and producers face...

Malpractice in food production entails unacceptable procedures and undesirable product qualities and other negative material outcomes. Despite their physical implications, behavioural sources of risk have become known as moral hazards. The probability of malpractice increases with attached...

Agri-environmental schemes (AES) have been studied under different perspectives in Europe, since the beginning of the ‘90s. Under regulation 1698/2005, agri-environmental schemes design has been modified with a more clear identification of a baseline for identifying the commitments and the...

Whole-farm income insurances are promoted in the new post-2013 Common Agricultural Policy (CAP). The current Crop Damage Compensation (CDC) scheme in Finland covers crop failure for farmers who have suffered losses and applied for the payments. This paper analyses the use of the Income...