Agricultural production is exposed to various risks which are important for decisions taken by farmers and other actors in the agri-food sector. Moreover, risk management is indispensable for all actors. This course introduces modern concepts on decision making under risk and recent developments in risk management. The focus of this course in on agriculture applications.
Learning objective
-to develop a better understanding of decision making under uncertainty and risk; -to gain experience in different approaches to analyze risky decisions; -to develop an understanding for different sources of risk in agricultural production; -to understand the crucial role of subjective perceptions and preferences for risk management decisions; -to get an overview on risk management in the agricultural sector, with a particular focus on insurance solutions
Content
- Quantification and measurement of risk - Risk preferences, expected utility theory and alternative models of risk behavior - Concepts on the decision making under risk - Production, investment and diversification decisions under risk - Risk management in agriculture
Lecture notes
Handouts will be distributed in the lecture and available on the moodle.
Prerequisites / Notice
knowledge of basic concepts of probability theory and microeconomics
Performance assessment
Performance assessment information (valid until the course unit is held again)
Performance assessment as a semester course