In this paper, we estimate the indirect economic losses to U.S. shrimp consumers as a result of the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Using a combination of national fisheries market data and the results of an experimental auction, we identify three sources of economic...

This paper introduces a web-based computer program designed to evaluate weather risk man-agement and weather insurance in the United States. The paper outlines the economics of weather risk in terms of agricultural production and household well-being; defines weather risk in terms of intensity,...

There is much interest in weather index insurance as a poverty‐mitigating tool, but concerns persist about potential demand for the product among the poorest of the poor. This paper relates the experiences in rural areas of Tigray region, Ethiopia through both commercial sign‐up data and a...

There has been much recent interest in the demand for index insurance, the influence of financial literacy on demand for financial products, as well as the positive benefits of experimental games. This paper describes a randomized control trial (RCT) that was performed to understand the effect...

We present results of experimental games with smallholder farmers in Tigray, Ethiopia, in 2010, in which participants in the games allocated money across risk management options. One of the options was index insurance that was the same as commercial products sold locally. Participants exhibited...

We analyze how to induce sellers to disclose food safety. With repeated interactions and safety correlated over time, cash transfers alone do not ensure disclosure. Perfect, but costly, testing ensures disclosure with a complex lottery that may be difficult to implement in practice. In contrast,...

Climate shocks have well-documented impacts on the short-term welfare of rural households in developing countries. We investigate the impact of droughts on Brazilian labour markets. We find long-term rural wage losses beyond the immediate impact of the drought, with affected workers taking five...

Farmers have to make key decisions, such as which crops to plant or whether to prepare the soil, before knowing how much water they will get. They face losses if they make costly decisions but do not receive water, and they may forego profits if they receive water without being prepared. We...

Paper removed/under major revisions Sept. 25, 2014.