The economics of agroterrorism has not been fully developed within the economics literature, yet with increasing concerns about agroterrorism it is important to understand how consumers will generally respond. This paper presents an overview of food safety issues, and develops an economical...

Purpose – The purpose of this paper is to investigate the economic significance of informal borrowing between friends and relatives in rural China. Guided by an economic model of household-production interactions, the paper provides results from a survey of over 1,500 households including...

How would a possible food safety scare influence food consumption? Using techniques from experimental psychology, a study of 103 lunchtime participants suggests that a food scare--avian influenza--would decrease consumption of the affected food by 17% if the subjects believed it was naturally...

Purpose – The purpose of this paper is to provide an overview of the farm and rural credit system in China. To do this the authors use the so‐called “7 Cs” of credit (these include: Credit, Character, Capacity, Capital, Condition, Capability, and Collateral) and for each “C” provide...

Purpose –The purpose of this paper is to provide a general discussion of how techniques from financial engineering can be used to investigate the economic costs of farm programs and to aid in the design of new financial products to implement margin protection for dairy farmers. Specifically...

Purpose –The purpose of this paper is to determine the extent of risk rationing among potential rural borrowers in Mexico and China. Design/methodology/approach –Using primary survey data from 730 farm households in the Shaanxi province of China and from 372 farmers in northeastern Mexico,...

We derive a general equilibrium linear relationship between the market prices of risks and market risk aversion under a continuous time stochastic volatility model completed by liquidly traded options. The relation is robust as it is valid for both endowment and production economies, and for...

Purpose – Firms facing significant income volatility can often suffer from downside risk such that return on assets is insufficient to meet fixed financial obligations. The purpose of this paper is to provide a prescriptive credit solution for small businesses facing exogenous income risk....

Purpose – Motivated by recent congressional interest in eradicating government sponsored enterprises (GSE), the purpose of this paper is to develop a framework to price the implicit government guarantee embedded in the bonds issued by the Farm Credit System. Design/methodology/approach – The...

This paper presents a model and framework for pricing degree‐day weather derivatives when the weather variable is a non‐traded asset. Using daily weather data from 1840S1996, it is shown that a degree‐day weather index exhibits stable volatility and satisfies the random walk hypothesis....