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Abstract

Risk management has virtually become increasingly important in all the aspects of the economy, including agriculture, Every country that considers agriculture a strategically significant economic sector strives for effective public climatic risk management in agriculture. We distinguish two major types of risk in agriculture. First, business risk includes production, market, institutional and personal risks. Second, financial risks result from different methods of financing the farm business. The nature of climate risk is supposed increasing uncertainty which impacts agriculture productivity. This has contributed to the development and acceptance of forms of public intervention aiming to reduce income variability. In particular, subsidized crop insurance is a widely used tool. The significance of this issue has grown in parallel with the growth in the importance of the collective role of agriculture sector that has addressed the recent guidelines in many developed countries. To examine the effects of public risk management programs on agricultural productivity in case of climatic risks, this study carries out an empirical analysis by developing an econometric application in American and European countries over the period 2000-2015

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