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

Listed author(s):
  • Mitchell, Paul D.
  • Zhu, En (John)
  • Hurley, Terrance M.

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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File URL: http://purl.umn.edu/20123
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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
Handle: RePEc:ags:aaea04:20123
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  1. Terrance M. Hurley & Paul D. Mitchell & Marlin E. Rice, 2004. "Risk and the Value of Bt Corn," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 345-358.
  2. Mitchell, Paul D. & Hurley, Terrance M. & Babcock, Bruce A. & Hellmich, Richard L., 2002. "Insuring The Stewardship Of Bt Corn: 'A Carrot' Versus 'A Stick'," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(02), December.
  3. 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.
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