throughout history. Rural citizens in developing countries to-day, however, remain highly exposed to fluctuations in the weather … signicant mortality and morbidity stress that rural households face in times ofadverse weather (Burgess, Deschenes, Donaldson … nominalagricultural income and acutely high food prices { are an extreme manifestation of this mapping from weather to death. Knowles …

In this paper we price a precipitation option based on empirical weather data from Germanyusing different pricing … that a considerable risk remainswith producers who are located remotely from the weather station. Another finding isthat … weather derivatives. …