This paper proposes a method for estimating a farmer's stochastic discount factor that is independent of his or her risk preferences, and shows that that stochastic discount factor is appropriate for calculating a farmer's willingness to pay for a crop insurance product. An empirical example...

Agricultural producers frequently face price discrimination that is based either on characteristics of their products, or on the physical manner in which the product is produced. We consider how to set such discriminatory prices optimally and show that for a very broad range of production...

This article studies the comparative statics of output subsidies for firms, with monotonic preferences over costs and returns, that face price and production uncertainty. The modeling of deficiency payments, support-price schemes, and stochastic supply shifts in a state-space framework is...

An analytically simple and tractable approach to firm-level welfare analysis of complete and partial mean-preserving price stabilization for producers with general risk-averse preferences facing a stochastic technology is developed. Necessary and sufficient conditions for price stabilization to...

Optimal trade policy in an uncertain world is examined. Decision-maker attitudes toward uncertainty are represented in terms of the <link rid="b16">Gilboa-Schmeidler (1989)</link> maximin expected-utility (MMEU) model. The central result is that in a two-country, general-equilibrium setting with both trading partners...

The implementability of area-yield insurance contracts in the presence of symmetric and asymmetric information about the farmer's "beta" linking his yield to the risk-pool's yield is examined. In the presence of fixed costs and symmetric information <link rid="b4">Mahul's</link> result that optimality requires...