IDEAS home Printed from https://ideas.repec.org/a/prg/jnleam/v2010y2010i2id97.html
   My bibliography  Save this article

Asymmetric information in managing agricultural production risk

Author

Listed:
  • Jindřich Špička

Abstract

The aim of the paper is to apply a theory of asymmetric information to managing production risk in agriculture. The second part of the paper is devoted to the tools for reducing the information asymmetry - parametric products (weather derivatives, index insurance). The results are based on empirical analyses published in scientific journals. The findings were consulted with specialists on agricultural insurance in the Czech Republic. The results indicate the existence of moral hazard and adverse selection in farmers' behaviour. The article is a theoretical basis for definition of weather derivatives in agriculture.

Suggested Citation

  • Jindřich Špička, 2010. "Asymmetric information in managing agricultural production risk," Ekonomika a Management, University of Economics, Prague, vol. 2010(2).
  • Handle: RePEc:prg:jnleam:v:2010:y:2010:i:2:id:97
    as

    Download full text from publisher

    File URL: http://www.vse.cz/polek/download.php?jnl=eam&pdf=97.pdf
    Download Restriction: free of charge

    File URL: http://www.vse.cz/eam/97
    Download Restriction: free of charge

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michael J. Roberts & Nigel Key & Erik O'Donoghue, 2006. "Estimating the Extent of Moral Hazard in Crop Insurance Using Administrative Data," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(3), pages 381-390.
    2. Goodwin, Barry K., 2000. "Instability And Risk In U.S. Agriculture," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(1), March.
    3. Richard E. Just & Linda Calvin & John Quiggin, 1999. "Adverse Selection in Crop Insurance: Actuarial and Asymmetric Information Incentives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 834-849.
    4. Vedenov, Dmitry V. & Barnett, Barry J., 2004. "Efficiency of Weather Derivatives as Primary Crop Insurance Instruments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(03), December.
    5. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
    6. Rubinstein, Ariel & Yaari, Menahem E., 1983. "Repeated insurance contracts and moral hazard," Journal of Economic Theory, Elsevier, vol. 30(1), pages 74-97, June.
    7. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Řízení rizik; Zemědělství; Agriculture; klimatické deriváty; informační asymetrie; Weather derivatives; Risk management; Information asymmetry;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnleam:v:2010:y:2010:i:2:id:97. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frantisek Sokolovsky). General contact details of provider: http://edirc.repec.org/data/uevsecz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.