Asymmetric information in managing agricultural production risk
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.
Volume (Year): 2010 (2010)
Issue (Month): 2 ()
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"Adverse Selection in Crop Insurance: Actuarial and Asymmetric Information Incentives,"
197809, University of Maryland, Department of Agricultural and Resource Economics.
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- 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.
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