Optimal Producer Behavior in the Presence of Area-Yield Crop Insurance

Robert Chambers, J. Quiggin

    Research output: Contribution to journalArticlepeer-review

    25 Citations (Scopus)

    Abstract

    Optimal producer behavior in the presence of area-yield insurance is studied. The producer's optimal production and insurance choices are characterized. The effect of the provision of area-yield insurance on production pattern,; is studied, and sufficient condition,, tot the provision of area-yield insurance to increase the riskiness of the individual producer's decisions are derived, A separation result is derived for area-yield insurance contracts and stochastic technologies.
    Original languageEnglish
    Pages (from-to)320-334
    JournalAmerican Journal of Agricultural Economics
    Volume84
    Issue number2
    DOIs
    Publication statusPublished - 2002

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