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| Elmer, Nicole A.; Thurow, Amy Purvis; Johnson, Jason L.; Rosson, C. Parr, III. |
| The Dixit-Pindyck model was applied to examine the hypothesis that uncertainty associated with grapefruit production costs and returns is an important determinant of Texas grapefruit growers' investment behavior. Freezes, price variability, and the effects of expanded trade were analyzed as risk factors. An investment decision rule based on a net-present value calculation would approve a 25-year commitment to a 20-acre grapefruit grove, given a 6-percent discount rate. The modified hurdle rate, calculated using an ex ante version of the Dixit-Pindyck model, is 24 percent. The major source of the risk borne by Texas grapefruit investors is from freezes, rather than from expanded trade. |
| Tipo: Journal Article |
Palavras-chave: Citrus; Ex ante analysis; Dixit-Pindyck model; Freezes; Investment; Simulation; Texas; Trade; Crop Production/Industries. |
| Ano: 2001 |
URL: http://purl.umn.edu/15451 |
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| Bokusheva, Raushan; Breustedt, Gunnar. |
| The paper evaluates the effectiveness of several index-based crop insurance schemes by comparing results from two alternative evaluation approaches. We apply the common ex post approach from the literature by specifying and evaluating insurance contracts by means of the data for the same historical period. We introduce an ex ante evaluation approach by distinguishing between two consecutive periods in the available time series: the first period is used for determining insurance parameters and optimal number of farmer’s insurance contracts; and the subsequent one is considered for the evaluation of the risk reduction due to the insurance contract defined as in the first period. Our empirical results based on the data for 40 grain producers in Kazakhstan... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Ex ante analysis; Index-based crop insurance; Weather-based index insurance; Kazakhstan; Risk and Uncertainty. |
| Ano: 2008 |
URL: http://purl.umn.edu/43957 |
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