Farm survey data show that the risk aversion of West Australian farmers is comparable to that of other asset holders … other perils but not against the greatest risk – drought. The farm survey indicates that adverse selection does not arise in … the existing market for crop insurance because insurance premiums reflect the risk of crop failure. However, a future …

asymmetric information and costs of claims verification, while reducing basis risk compared to index-based insurance. A pilot … implementation in the rice-wheat belt of India speaks to PBI being a feasible and valuable innovation to reduce downside basis risk …

of insurance. Third, we help answer the puzzle why the most risk averse are least likely to take up agricultural …

Basis risk––an imperfect correlation between an aggregate index and idiosyncratic damage––is a major impediment to … direct measurement. This study uses household panel data from rural Zambia to estimate the impact of spatial basis risk on … specifications. Then, we quantify the spatial basis risk for each household using past rainfall data at the plot level. Exploiting …

. Besides, the risk mitigation provided by informal risk-sharing arrangements is restricted by their inability to protect … that the formal contract may crowd out informal risk-sharing if it is offered to individuals. Second, we find that both … risk-taking and welfare may be reduced by the introduction of index insurance if the premium is set too high. If the formal …

production risk and may therefore reduce farmer demand for on-farm varietal diversity, especially when only a few transgenic …

Decisions involving risk are usually taken in the presence of other insurable or non-insurable risks, the latter type … called background risk. We examine how changing background risk influences risk-taking based on panel data with monthly … observations from Senegalese fishermen. Fishing income is volatile and income risk depends on weather conditions and on …

studies the effects of the agricultural risk and the insurance on agricultural economy in the context of climate change. First …, this paper establishes the model incorporating with the agricultural risk and insurance. The model indicates that the … agricultural risks, especially for the agriculture in the primary industry …

This article compares the use of risk-increasing and risk-reducing production inputs with the experimentally measured … risk attitudes of farmers. For this purpose, the Just-Pope production function indicates production inputs’ influence on … output risk and a Holt-Laury lottery is used to measure the producerś risk attitude. We test whether more risk averse farmers …