The nature of the seasonal water market is examined using a theoretical model andempirical evidence from the Victorian market. Drivers of the seasonal opportunitycost of water include the underlying nature of investment in the industry made in thecontext of risky entitlement yields; and the...

In California, the tremendous spatial and temporal variation in precipitation suggests that flexible contractual arrangements, such as option contracts, would increase allocative efficiency of water over time and space. Under such arrangements, a water agency pays an option premium for the right...

The optimal crop revenue insurance contract is designed from recent developments in the theory of insurance economics under incomplete markets. The message is two-fold. Firstly, when the indemnity schedule is contingent onindividual price and individual yield, the optimal contract depends only...

When a new technology consists of sequences of innovations that culminate in a finalconsumer product, the balance between successive innovators is one of the main concernsin the design of the patent system. While intertemporal aspects of incentive are critical inthis environment of sequential...