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Adverse Selection, Moral Hazard, And Grower Compliance With Bt Corn Refuge

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Author Info
Mitchell, Paul D.
Zhu, En
Hurley, Terrance M.

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Abstract

This paper develops a principal-agent model of farmer compliance with Bt corn refuge requirements intended to manage the evolution of resistance to the Bt toxin by insect pests. The model endogenizes the price of the technology, the audit rate, and the fine imposed on non-complying farmers when farmer willingness to pay for Bt corn and compliance effort is private information.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 20123.

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Date of creation: 2004
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Handle: RePEc:ags:aaea04:20123

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Related research
Keywords: Crop Production/Industries;

References listed on IDEAS
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  1. Mitchell, Paul D. & Hurley, Terrance M. & Babcock, Bruce A. & Hellmich, Richard L., 2002. "Insuring the Stewardship of Bt Corn: A Carrot versus a Stick," Staff General Research Papers 10073, Iowa State University, Department of Economics.
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  2. Hurley, Terrance M. & Babcock, Bruce A. & Hellmich, Richard L., 2001. "Bt Corn And Insect Resistance: An Economic Assessment Of Refuges," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July. [Downloadable!]
  3. Terrance M. Hurley & Paul D. Mitchell & Marlin E. Rice, 2004. "Risk and the Value of Bt Corn," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 86(2), pages 345-358, 05. [Downloadable!] (restricted)
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This page was last updated on 2009-12-11.

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