751-0423-00L Risk Analysis and Risk Management in Agriculture
| Semester | Autumn Semester 2022 |
| Lecturers | R. Finger |
| Periodicity | yearly recurring course |
| Language of instruction | English |
| Abstract | Agricultural production is exposed to various risks and risk management is indispensable. This course introduces modern concepts on farmers' decision making under risk and risk management. We present innovative insights, emprical example from European agriculture. You gain hands-on experience using R. |
| Learning objective | -to develop a better understanding of decision making under uncertainty and risk; - gain hands-on experience in risk analysis and management using R -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, Cumulative Prospect Theory - Production and input use decisions under risk - Portfolio Theory and Farm Diversification - Forwards, Futures, Crop Insurance - Weather Index Insurance and Satellite Imagery - Empirical Applications using R |
| 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 |