Data/hora: 04/06/2024 09:17:48

Provedor de dados: | 31
País: | United States
Título: | Hedging a Government Entitlement: The Case of Countercyclical Payments
Autores: | Anderson,   John D.; Coble,   Keith H.; Miller,   J. Corey.
Data: | 2008-05-07
Ano: | 2007
Palavras-chave: | Countercyclical payment; Expected utility; Hedging; Policy; Risk; Demand and Price Analysis; Risk and Uncertainty; Q12; Q13; Q18.
Resumo: | This research evaluates whether the introduction of countercyclical payments creates an incentive for program crop producers to hedge the expected government payment using futures and/or options. Results indicate that some level of countercyclical payment hedging is optimal for risk-averse decision makers. However, optimal hedge ratios depend on planting time expectations of marketing year average price as well as on what crop, if any, has been planted on countercyclical payment base acres. These results suggest that the ability to hedge may make these payments more decoupled but also illustrate the distortion of producer behavior induced by farm programs.
Tipo: | Journal Article
Idioma: | Inglês

Identificador:

29910

http://purl.umn.edu/6299

Relação: | Journal of Agricultural and Applied Economics&gt;Volume 39, Number 03, December 2007
Formato: | 16