scholarly journals Grower Risk Aversion and the Cost of Moral Hazard in Livestock Production Contracts

2004 ◽  
Vol 86 (3) ◽  
pp. 835-841 ◽  
Author(s):  
Pierre Dubois ◽  
Tomislav Vukina
Keyword(s):  
Risk Aversion ◽  
Moral Hazard ◽  
Livestock Production ◽  
Production Contracts ◽  
The Cost

Disclosure and Secrecy in Employee Monitoring

2010 ◽  
Vol 22 (1) ◽  
pp. 187-208
Author(s):  
Mitchell A. Farlee
Keyword(s):  
Risk Aversion ◽  
Moral Hazard ◽  
Monitoring System ◽  
Risk Premium ◽  
Risk Sharing ◽  
Limited Liability ◽  
Efficient Production ◽  
System A ◽  
Liability Risk ◽  
Employee Monitoring

ABSTRACT: Disclosure and monitoring policy are studied, where disclosure relates to information about the monitoring system. A moral hazard model is presented where employee monitoring occurs with some exogenous probability and the owner privately learns whether he will be monitoring before the employee chooses his productive action. Disclosure policy is an owner choice between revealing to the employee whether he will be monitoring before the action (Disclosure) or remaining silent (Secrecy). The results rely on the joint presence of risk aversion and limited liability. Risk aversion creates an efficiency/risk tradeoff where secrecy obtains risk-sharing benefits. Limited liability reduces these benefits, allowing preference for disclosure. Lower monitoring probabilities increase the risk premium required to obtain effort with secrecy. For small monitoring probabilities, disclosure is preferred even though less efficient production is achieved, because disclosure provides a greater risk-sharing benefit. For high monitoring probabilities, secrecy is preferred because it leads to greater efficiency despite a greater risk premium.

scholarly journals RESULTS OF THE NUTRITIONAL PRESERVATION RESEARCH OF THE ALFALFA LAYING ON STORAGE WITH TWO-PHASE COMPACTION

2020 ◽  
Vol 60 (1) ◽  
pp. 264-274
Author(s):  
D.O. Milko ◽  
O.H. Sclyar ◽  
R.V. Sclyar ◽  
G.P. Pedchenкo ◽  
D.P. Zhuravel ◽  
...  
Keyword(s):  
Food Supply ◽  
Nutrient Content ◽  
Livestock Production ◽  
Storage Process ◽  
Main Criterion ◽  
Milk Productivity ◽  
Two Phase ◽  
Modern Manufacturing ◽  
The Cost

In modern manufacturing of livestock production, the outstanding value is allocated for a food supply. The main criterion for evaluating the quality of feed components is the nutrient content of the feed ration. However, in the process of the storage, the maintenance of the nutritious substances decreases for various reasons that are leading to decreasing livestock efficiency and increasing the cost. The results of the use of a two-phase compaction of the forage vegetable components on the example of the alfalfa are given in the article. The dependence coefficient of the nutritional preservation on density of the alfalfa put on storage are also presented in this article. The applied method and the results obtained can be used in the development and design offices to create new equipment based on the two-phase compaction of the fodder vegetable component mixes by preparing them for storage. The application of this method brings to decreasing losses of nutrients in the storage process which reduces the components cost in total with increasing additional weights and the milk productivity.

scholarly journals Application of the ABC method in animal husbandry

2020 ◽  
Vol 17 ◽  
pp. 00244
Author(s):  
Tatyana Pavlyuchenko ◽  
Natalya Kosteva
Keyword(s):  
Traditional Method ◽  
Animal Husbandry ◽  
Livestock Production ◽  
Cost Of Production ◽  
Abc Method ◽  
Quality Of Products ◽  
The Cost

One of the most important problems is the timely and accurate accounting of costs and output. Providing benefits from sales, obtaining benefits from enterprises and, accordingly, improving the quality of products. In this regard, the problem of building a system of state accounting of costs in agriculture is very relevant for national scientists. The article explores the methods of calculating the cost of livestock production by the traditional method and the ABC method, and also studies the prospects for determining the nature of ABC in the practice of enterprises. The study should lead to difficulties. This system is not widespread and does not have developed guidelines. This can lead to an incorrect distribution of processes and costs, a distortion of the calculation of the cost of production. Nevertheless, with a competent approach to using these parameters, you can get more accurate results.

The role of ex ante regulations in addressing problems of moral hazard in agricultural insurance

2002 ◽  
Vol 62 (2) ◽  
pp. 103-116 ◽  
Author(s):  
Calum G. Turvey ◽  
Michael Hoy ◽  
Zahirul Islam
Keyword(s):  
Moral Hazard ◽  
Crop Production ◽  
Insurance Coverage ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Growing Seasons ◽  
Input Use ◽  
The Cost ◽  
Input Level

We develop a theoretical model of input use by agricultural producers who purchase crop insurance, and thus may engage in moral hazard. Through simulations, our findings show a combination of partial insurance coverage and partial monitoring of inputs may reduce substantially the problems associated with moral hazard. The minimum level of input use that must be required by regulation is determined to be substantially lower than the optimal or actual input level chosen by producers. Because the use of inputs for crop production occurs in many stages over the pre‐planting, planting, and growing seasons, only a minimal input requirement is needed. Thus, the cost of implementing such a regulation can be kept much lower than would be the case for a regulation of complete monitoring of input usage.

Subjective value of the guarantees embedded in public cash-balance pension plans

2017 ◽  
Vol 17 (2) ◽  
pp. 231-250
Author(s):  
CHUN-HUA TANG
Keyword(s):  
Risk Aversion ◽  
Option Pricing ◽  
Pension Plans ◽  
Numerical Results ◽  
Cash Balance ◽  
Certainty Equivalence ◽  
Subjective Value ◽  
Public Sectors ◽  
The Cost ◽  
Cash Balance Pension Plans

AbstractSome public sectors provide cash-balance pension plans with guaranteed interest credits. We use the certainty-equivalence framework to derive the subjective value of the guarantee perceived by the participant. Numerical results show that in many scenarios the subjective value is lower than the cost of the guarantee derived by option pricing approaches, implying that public sectors potentially spend too much in providing the guarantee. However, the subjective value could be higher than the cost of the guarantee under some scenarios, depending on the participant's level of risk aversion, the feasibility of diversification, and so forth.

scholarly journals Risk aversion, moral hazard, and the principal's loss

2002 ◽  
Vol 20 (3) ◽  
pp. 637-644 ◽  
Author(s):  
Hector Chade ◽  
Virginia N. Vera de Serio
Keyword(s):  
Risk Aversion ◽  
Moral Hazard
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