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| Dubois, Pierre; Vukina, Tomislav. |
| The objective of this paper is to develop an analytical framework for estimation of the parameters of a structural model of an incentive contract under moral hazard, taking into account agents heterogeneity in preferences. We show that allowing the principal to strategically distribute the production inputs across heterogenous agents as part of the contract design, the principal is able to change what appears to be a uniform contract into individualized contracts tailored to fit agents' preferences or characteristics. Using micro level data on swine production contract settlements, we find that contracting farmers are heterogenous with respect to their risk aversion and that this heterogeneity affects the principal's allocation of production inputs across... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Agency Contracts; Optimal Incentives; Moral Hazard; Risk Aversion; Heterogeneity; Production Economics; D82; L24; Q12; K32; L51. |
| Ano: 2006 |
URL: http://purl.umn.edu/25568 |
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| Hranaiova, Jana; Stefanou, Spiro E.. |
| SUMMARY: This study focuses on the analysis of the production behavior and risk preferences in the presence of output price uncertainty. Following a theoretical model based on the assumption of maximization of expected utility of profits, the approach used in this study infers information about risk preferences from the production characteristics of the farm. In addition, the nonparametric method of estimating elasticity of scale and technical change eliminates the need to impose a uniform production or cost functions on individual producers. The approach is applied to a panel of dairy farms, which are evaluated for their elasticity of scale and the total productivity growth components of their operations. Estimates of farmers' risk attitudes... |
| Tipo: Journal Article |
Palavras-chave: Uncertainty; Risk Aversion; Productivity Growth; Productivity Analysis; Q14. |
| Ano: 2002 |
URL: http://purl.umn.edu/28760 |
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| Alpizar, Francisco; Carlsson, Fredrik; Naranjo, Maria. |
| The risk of losses of income and productive means due to adverse weather associated to climate change can significantly differ between farmers sharing a productive landscape. It is important to learn more about how farmers react to different levels of risk, under measurable and unmeasurable uncertainty. Moreover, the costs associated to investments in reduced vulnerability to climatic events are likely to exhibit economies of scope. We explore these issues using a framed field experiment that captures realistically the main characteristics of production, and the likely weather related losses of premium coffee farmers in Tarrazu, Costa Rica. Given that the region recently was severely hit by an extreme, albeit very infrequent, climatic event, we expected to... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Risk Aversion; Ambiguity Aversion; Technology Adoption; Climate change; Field Experiment; Environmental Economics and Policy; C93; D81; H41; Q16; Q54. |
| Ano: 2010 |
URL: http://purl.umn.edu/92708 |
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