How large are potential benefits from global risksharing? In order to answer this question we propose a new methodology that is closely connected with the empirical growth literature. We obtain estimates of residual risk (growth uncertainty) at various horizons from regressions of...

A farmer planning to use Net Present Value (NPV) analysis on machinery requires estimates of operating benefits over time, an estimate of terminal or salvage values and a risk-adjusted discount rate. Using financial market information and related Root Mean Square Errors on machinery value...

This paper examines alternative risk management strategies in terms of their effectiveness for three representative Alberta farm operations. Stochastic dynamic simulation methods are used to model financial performance for these farms, and alternative risk management programs are compared in...

Insurance policies that trigger on county yield and revenue indexes are expected to be more actuarially fair than policies that trigger on individual farm yield and revenue since individual farm hidden actions and hidden information impacting purchase decisions will be built into insurance...

Farmers face many risks which arise from natural, economic and socio-political environments. Risk sharing institutions like national insurance and credit schemes that help reduce the burden of risk to society are weak in Uasin Gishu county. Private sector insurance products are still in their...

The successful expansion of the U.S. crop insurance program has not eliminated ad hoc disaster assistance. An alternative currently being explored by members of Congress and others in preparation of the 2007 farm bill is to simply remove the "ad hoc" part of disaster assistance programs by...