1. Policies on Managing Risk in Agricultural Markets
- Author
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Jock R. Anderson, Donald F. Larson, and Panos Varangis
- Subjects
RURAL CREDIT MARKET ,PRIVATE INVESTMENT ,MARKET REFORM ,WEATHER INSURANCE ,INFLATION ,Economics ,EMPLOYMENT ,GOVERNMENT INTERVENTION ,LIVESTOCK INSURANCE ,SUPPLY SIDE ,ILLIQUID MARKETS ,PRICE STABILITY ,RURAL CREDIT ,INCOME ,INTERNATIONAL TRADING ,SEVERE WEATHER EVENTS ,BONDS ,DOMESTIC BANK ,MORAL HAZARD ,MARKET INSTRUMENTS ,CONTRACT DESIGNS ,SHORT-TERM INSTRUMENTS ,LABOR SUPPLY ,FINANCIAL MARKETS ,PRICE POLICIES ,WEATHER DERIVATIVES ,HOLDING ,COMMERCIAL INSURANCE ,Development ,DEPOSITS ,RISK MARKETS ,INTERNATIONAL FINANCE ,DEVELOPMENT INSTITUTIONS ,RISK MANAGEMENT STRATEGIES ,SMALL BUSINESSES ,Systemic risk ,CERTIFICATE OF DEPOSIT ,PROPERTY RIGHTS ,RETIREMENT ,DOMESTIC MARKETS ,AGRICULTURAL COMMODITIES ,HEDGE RATIO ,LIQUIDITY ,PRICE INDEX ,SUBSISTENCE FARMERS ,LAND REFORM ,EFFICIENT MARKETS ,DOMESTIC CREDIT ,GOVERNMENT POLICIES ,AVERAGE PRICE ,OPTIONS MARKETS ,INSURANCE PRODUCT ,STATE ENTERPRISES ,EXTERNAL SHOCKS ,PERMANENT INCOME HYPOTHESIS ,AGRICULTURAL ECONOMICS ,PORTFOLIO ,BANKRUPTCY ,OPEN ECONOMIES ,POLITICAL ECONOMY ,RISK SHARING ,RISK MANAGEMENT TOOL ,RURAL FINANCE INSTITUTIONS ,Risk management ,GOVERNMENT REVENUES ,Public economics ,OUTPUTS ,Financial risk management ,CAPITAL MARKETS ,PARTIAL GUARANTEES ,CROP LOSSES ,EXCHANGE RATE ,FINANCIAL INSTITUTIONS ,RURAL FINANCE ,SAFETY ,CURRENCY ,BOND ,NATURAL DISASTERS ,FEASIBILITY ,AGRICULTURAL SHOCKS ,BORROWING ,MACROECONOMIC INSTABILITY ,INSURANCE ARRANGEMENTS ,LOAN ,NATURAL DISASTER ,Commodity market ,COMMODITY PRICES ,FIXED COSTS ,DEVELOPING COUNTRIES ,DISASTER INSURANCE ,INSURANCE SYSTEMS ,LIEN ,CENTRAL BANKS ,INSURANCE MECHANISMS ,LABOR MARKETS ,ECONOMIC ANALYSIS ,ECONOMICS ,business.industry ,CREDIT MARKETS ,LOCAL ECONOMY ,CLIMATE ,INSURANCE SCHEME ,ADVERSE SELECTION ,PRICE INSURANCE ,MARKET ECONOMY ,INCOME VOLATILITY ,FINANCIAL INSTRUMENTS ,FUTURES MARKETS ,MINIMUM PRICE ,RISK EXPOSURE ,TRANSACTION ,WAREHOUSE ,INVENTORY ,DEVELOPING COUNTRY ,ECONOMIC GROWTH ,TREATIES ,GROSS DOMESTIC PRODUCT ,EXCHANGE RATES ,GOVERNMENT DEBT ,COMMODITY ,TRANSACTION COSTS ,Systematic risk ,STOCKS ,DOMESTIC MARKET ,RISK AVERSION ,SAFETY NETS ,BENEFICIARIES ,INSTRUMENT ,INSURANCE POLICIES ,COMMODITY EXPORTS ,GOVERNMENT SUBSIDIES ,INVESTING ,PUBLIC INVESTMENTS ,RESOURCE ALLOCATION ,FUTURES MARKET ,JOBS ,FINANCING FACILITY ,CROP INSURANCE ,INCOME SHOCKS ,PERFORMANCE RISKS ,RESERVES ,ENFORCEMENT MECHANISMS ,MARKET REFORMS ,INSURANCE CONTRACT ,INVENTORY COLLATERAL ,INDEMNITY PAYMENTS ,SETTLEMENT ,RISK MANAGEMENT ,FORWARD MARKETS ,CONSUMPTION SMOOTHING ,Economic policy ,LIVING STANDARDS ,BENEFICIARY ,INVENTORIES ,DEVELOPMENT ECONOMICS ,INSURANCE INSTRUMENTS ,MUTUAL INSURANCE ,EXPORTERS ,CREDIT ASSOCIATIONS ,INTERNATIONAL MARKETS ,DEVELOPMENT FINANCE ,Incomplete markets ,EXTERNAL DEBT ,NATIONAL INCOME ,INCOMPLETE MARKETS ,OPTIMAL CONTRACT ,FUTURES ,SAFETY NET ,WAREHOUSE RECEIPT ,DEFAULTS ,Financial market ,WAREHOUSE RECEIPTS ,GOVERNMENT FINANCING ,RELATIVE PRICES ,ASYMMETRIC INFORMATION ,COMMODITY PRICE ,MARKET VOLATILITY ,CONTRACT ENFORCEMENT ,ECONOMIC DEVELOPMENT ,COMMODITY RISK MANAGEMENT ,WAREHOUSE RECEIPT SYSTEMS ,CRISES ,RETURN ,SEVERE WEATHER ,DROUGHT INSURANCE ,DEVELOPING ECONOMIES ,ECONOMIC ACTIVITY ,MULTILATERAL LENDERS ,MACROECONOMIC STABILIZATION ,INDEMNITY PAYMENT ,PRICE RISK ,LOCAL CURRENCIES ,LINES OF CREDIT ,PORTFOLIOS ,AGGREGATE DEMAND ,REMITTANCES ,INTERNATIONAL DEVELOPMENT ,LOCAL GOVERNMENTS ,PRICE RISKS ,HUMAN CAPITAL ,PRIVATE INVESTORS ,SOCIAL DEVELOPMENT ,MULTIPLE PERIL CROP INSURANCE ,TRANSITION ECONOMIES ,Capital market ,MONITORING COSTS ,PRIMARY MARKETS ,Economics and Econometrics ,AGRICULTURAL INSURANCE ,INSURANCE SCHEMES ,WAREHOUSES ,PRICE VOLATILITY ,SOCIAL CONFLICT ,EXPENDITURES ,DEBT MANAGEMENT ,IMPORTS ,MONOPOLIES ,MACROECONOMIC POLICY ,INTERNATIONAL BANK ,COMMODITY MARKETS ,FARMING HOUSEHOLDS ,CONTRACT DESIGN ,CREDIT SYSTEMS ,MONETARY FUND ,RESOURCE ECONOMICS ,PRICE MOVEMENTS ,ECONOMIC SYSTEMS ,SAVINGS ,ADVERSE EFFECTS ,INSURANCE MARKETS ,DOMESTIC PRICES ,INSURANCE CONTRACTS ,PRICE UNCERTAINTY ,ISLAND ECONOMIES ,business - Abstract
Over the past dozen years, policymakers have largely abandoned long-standing popular approaches for addressing risk in agriculture without fully resolving the question of how best to manage the negative consequences of volatile agricultural markets. The article reviews the transition from past policies and describes current approaches that distinguish between the trade-related fiscal consequences of commodity market volatility and the consequences of price and production risks for vulnerable rural households and communities. Current policies rely more heavily on markets, even though markets for risk are incomplete in numerous ways. The benefits and limitations of market-based instruments are examined in the context of risk management strategies, and innovative approaches to extend the reach of risk markets are discussed.
- Published
- 2004
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