This article presents the results of an experiment designed to test theoretical predictions about the impact of public compensation schemes and ambiguity on insurance and self-insurance decisions. Consistent with theory, we find that government assistance significantly reduces willingness to pay...

In this paper, we build on the emerging literature on group decision-making to study the so-called ‘group shift’ effect, i.e., groups are less risk-averse than individuals. Our study complements past research in two ways. First, we study the group shift effect under two sources of...

Governments of some European countries compensate landowners for windstorm damage to forests. We analyze the impact of such programmes on non-industrial private forest owner decisions to purchase an insurance policy for windstorm coverage and other natural events and/or invest in risk-reducing...

This article presents a theoretical model of private forest owner’s prevention and insurance choice in presence of natural risk. In France, evidence shows that non-industrial private forest owners rarely invest in prevention or insurance activities to reduce possible damages caused by natural...

The objective of the paper is to analyze the risk management behavior of a non-industrial private forest owner under uncertainty about the timber production. Two types of hedging strategies with harvesting decisions are studied: a financial practice versus a physical one. We develop a two-period...

This paper deals with private forest owners' insurance demand against forest fire risk. Econometric analysis is realized on a sample of forest owners from Aquitaine. It allows identifying determinants of participation to insurance from determinants explaining the difference of willingness-to-pay...

The paper focuses on forests management strategies for natural hazards of nonindustrial owners, in the case where the forest provides nontimber services. We introduce a basic two-period model where the private owner manages natural hazards on his forest thanks to the accumulation of savings on...

The seasonal irrigation water demand under uncertainty, which lies at the core of this paper, is still very roughly known. We know, however, that irrigated agriculture accounts for a large proportion of water use, especially in many water-scarce areas. In this paper, we estimate the irrigation...

We estimate the irrigation water demand for a season under uncertainty using a dynamic programming model and a crop-growth simulation model (EPIC-PHASE) linked to a CRRA utility function representing the farmer's objective function. This model is used to generate the data allowing the estimation...