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Moral Hazard And Bt Corn Refuge

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  • Mitchell, Paul D.
  • Zhu, En (John)

Abstract

Using a principal-agent model, we find the optimal subsidy contract that induces grower compliance with Bt corn refuge requirements for managing insect resistance when asymmetric information exists concerning grower behavior. The optimal contract balances the cost of monitoring and the benefit of reducing the likelihood of insect resistance.

Suggested Citation

  • Mitchell, Paul D. & Zhu, En (John), 2003. "Moral Hazard And Bt Corn Refuge," 2003 Annual meeting, July 27-30, Montreal, Canada 22113, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea03:22113
    DOI: 10.22004/ag.econ.22113
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    References listed on IDEAS

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