@article{Motamed:235547,
      recid = {235547},
      author = {Motamed, Mesbah and O'Donoghue, Erik},
      title = {Natural Hedge Effects on Revenue Stability and Crop  Insurance Decisions},
      address = {2016},
      number = {333-2016-14407},
      year = {2016},
      abstract = {The natural hedge is a familiar concept in the  agricultural risk literature, but little work has formally  examined its size and effect on producer outcomes. In this  paper, we systematically measure the impact of the natural  hedge on revenue stability over the period 1960-2014. We  also test its effect on present-day insurance uptake  decisions. As part of the analysis, we propose an  alternative measure of the natural hedge that is not  subject to the simultaneity of price and yield outcomes. As  an initial attempt, we correlate prices with rainfall to  obtain a more "natural" natural hedge. From our results,  the natural hedge exerts a stabilizing effect on long-run  producer revenues, but its impact on insurance decisions is  less consistent.},
      url = {http://ageconsearch.umn.edu/record/235547},
      doi = {https://doi.org/10.22004/ag.econ.235547},
}