Agricultural producers make investment decisions based on beliefs about future returns. This article investigates how changes in beliefs about input availability affects the adoption of conservation practices. We develop a theoretical model to examine how a producer's beliefs about water...

Governments often contract with private firms to provide public services such as health care and education. To decrease firms' incentives to selectively enroll low-cost individuals, governments frequently "risk-adjust" payments to firms based on enrollees' characteristics. We model how risk...