Existing derivative pricing methods cannot be used to price weather derivatives due to the absence of a hedgeable commodity underlying weather risk and the complexity of weather processes. This study develops a pricing model that considers weather derivatives to be the same as any other...

The study investigates the economic response of tart cherry yields to planting density using an unbalanced longitudinal yield data from tart cherry orchards in Northwest Michigan. The relationship between tart cherry yield and tree age is specified as a linear spline function and planting...