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Innovations in Government Responses to Catastrophic Risk Sharing for Agriculture in Developing Countries

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Listed:
  • Skees, Jerry R.
  • Barnett, Barry J.
  • Hartell, Jason G.

Abstract

Markets for transferring catastrophic risk in agriculture are woefully lacking in developing countries. Even in developed countries, markets for transferring the risk of crop losses caused by natural hazards generally exist only with large government subsidies. However, such subsidies can be expensive, inefficient, and have detrimental implications that make future catastrophes even worse. In developing countries fiscal constraints limit the degree to which governments can subsidize markets for agricultural risk-sharing. Nonetheless, there are specific things governments can do to facilitate the development of these markets. This paper addresses the role of government in agricultural risk-sharing for natural disasters that impact crop yields or livestock mortality.

Suggested Citation

  • Skees, Jerry R. & Barnett, Barry J. & Hartell, Jason G., 2006. "Innovations in Government Responses to Catastrophic Risk Sharing for Agriculture in Developing Countries," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25548, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25548
    DOI: 10.22004/ag.econ.25548
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    References listed on IDEAS

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    1. Arrow, Kenneth J, 1996. "The Theory of Risk-Bearing: Small and Great Risks," Journal of Risk and Uncertainty, Springer, vol. 12(2-3), pages 103-111, May.
    2. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," The World Bank Research Observer, World Bank, vol. 17(2), pages 141-166, September.
    3. J. Roy Black & Barry J. Barnett & Yingyao Hu, 1999. "Cooperatives and Capital Markets: The Case of Minnesota-Dakota Sugar Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1240-1246.
    4. Jerry R. Skees & Barry J. Barnett, 1999. "Conceptual and Practical Considerations for Sharing Catastrophic/Systemic Risks," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(2), pages 424-441.
    5. Priest, George L, 1996. "The Government, the Market, and the Problem of Catastrophic Loss," Journal of Risk and Uncertainty, Springer, vol. 12(2-3), pages 219-237, May.
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    Cited by:

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    2. Paulson, Nicholas D. & Hart, Chad E., 2006. "A Spatial Approach to Addressing Weather Derivative Basis Risk: A Drought Insurance Example," 2006 Annual meeting, July 23-26, Long Beach, CA 21249, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Wenner, Mark D., 2005. "Agricultural Insurance Revisited: New Developments and Perspectives in Latin America and the Caribbean," IDB Publications (Working Papers) 3164, Inter-American Development Bank.
    4. Mark D. Wenner, 2005. "Agricultural Insurance Revisited: New Developments and Perspectives in Latin America and the Caribbean," IDB Publications (Working Papers) 36838, Inter-American Development Bank.
    5. Nicole D. Peterson, 2012. "Developing Climate Adaptation: The Intersection of Climate Research and Development Programmes in Index Insurance," Development and Change, International Institute of Social Studies, vol. 43(2), pages 557-584, March.
    6. Noy, Ilan & Kusuma, Aditya & Nguyen, Cuong, 2017. "Insuring disasters: A survey of the economics of insurance programs for earthquakes and droughts," Working Paper Series 20250, Victoria University of Wellington, School of Economics and Finance.
    7. Turvey, Calum G. & Chantarat, Sommarat, 2006. "Weather-Linked Bonds," 2006 Agricultural and Rural Finance Markets in Transition, October 2-3, 2006, Washington, DC 133091, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    8. Priti Khatri & Prashant Kumar & Kaushlesh Singh Shakya & Marios C. Kirlas & Kamal Kant Tiwari, 2024. "Understanding the intertwined nature of rising multiple risks in modern agriculture and food system," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 24107-24150, September.

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