The 2002 Farm Bill creates several opportunities for landowners to adopt management practices that protect and improve soil and water quality. Landowners considering enrollment in conservation programs must compare the monetary and nonmonetary costs and benefits from removing land from...

Numerous studies have shown that compensation demanded (CD) to give up a commodity often greatly exceeds willingness to pay (WTP) to obtain the same commodity, even in incentive compatible experiments that penalize strategic misrepresentation. Observed CD/WTP disparities are too large to be...

Conservation reserve program (CRP) payments amount to several billion dollars annually. Payments are allocated to both remove land from production and to help farmers pay for conservation improvements. However, research examining whether farmers increase their utility with CRPs is limited. This...

This paper describes the application of contingent claims analysis (CCA) and systemic CCA to the top four commercial banks in Sweden. The balance sheet stress tests for four major banks were complemented with tests based on the CCA framework, a risk-adjusted balance sheet relating bank asset...

This paper introduces the Asset and Liability Management (ALM) compound option model. The model builds on the observation that the public sector net worth in a multi-period setting corresponds to the value of an option on an option on total government assets. Hence, the ALM compound option model...

This paper develops a comprehensive new framework to measure and analyze sovereign risk. Since traditional macroeconomic vulnerability indicators and accounting-based measures do not address risk in a comprehensive and forward-looking way, the contingent claims approach is used to construct a...

Derivamos las condiciones para la elección óptima de cartera bajo una utilidad con aversión al riesgo relativo constante y distribuciones de probabilidad alternativas que son capaces de capturar las caraterísticas de asimetría y curtosis de los rendimientos de los activos financieros....

This dissertation studies strategies to mitigate the risks associated with operational and strategic decisions of a firm, particularly focusing on project management, product development and procurement decisions. In the first essay we develop two simulation-based methods to evaluate risky...

Cropping in low-rainfall regions can be risky business. Farms are often characterized by high climatic and spatial variability, while input prices, particularly nitrogen (N) fertilisers, are rising steadily relative to grain prices. Consequently, in anticipation of having a poor season, farmers...

Mallee farmers minimize downside risk in dry seasons by applying low rates of nitrogen (N) fertiliser to their cereal crops. The opportunity to respond to and capitalize on the better years is further limited as most inputs are applied upfront at sowing. We used an economic-risk decision model...