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Self-insurance in the presence of background risk

Author

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  • Olivier Mahul

    (ESR - Unité de recherche d'Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique, EAAE - European Association of Agricultural Economists)

Abstract

Cet article montre comment la présence d'un risque sous-jacent inassurable peut inciter un agriculteur à augmenter sa consommation d'intrants destinés à lutter contre un autre risque indépendant. Un risque sous-jacent inassurable a un effet ambigu sur le niveau optimal de l'intrant. Cependant si les préférences de l'agriculteur vérifient la propriété de "standart risk aversion", l'effet de l'introduction d'un risque sous-jacent inassurable n'est plus ambigu et varie selon que la productivité marginale de l'intrant est croissante ou décroissante avec les états de la nature. Un risque catastrophique peut s'apparenter à un tel risque exogène. L'introduction d'une responsabilité limitée en cas de sinistre à travers la mise en place de programmes d'indemnisation des victimes ou la réduction de la probabilité d'occurrence d'un sinistre influencent les décisions d'auto-assurance d'un agriculteur envers un autre risque indépendant.

Suggested Citation

  • Olivier Mahul, 1996. "Self-insurance in the presence of background risk," Post-Print hal-01952128, HAL.
    • Handle: RePEc:hal:journl:hal-01952128
    Note: View the original document on HAL open archive server: https://hal.science/hal-01952128
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    References listed on IDEAS

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