Contractual breaches are very prevalent in developing countries, such as in China. In order to prevent breaches of contracts, the contractual designs between farmers and agricultural processors (Dragon-Heads Firms) in China, innovate in two ways: organizational innovations and contractual...

This paper employs the production function-based method proposed by Just and Pope (1978, 1979) to explicitly analyze production risk in the context of Chinese grain farming and climate change, and test for a potential endogeneity of climate factors in Chinese grain production. Our results...