Information Value and Risk Premium in Agricultural Production: The Case of Split Nitrogen Application for Corn
构建了风险下分次施氮的农业生产模型，联合估计技术参数和风险厌恶程度，发现信息价值和风险溢价约占中西部玉米种植者肥料成本的30%。
Abstract This article considers an agricultural production model of sequential nitrogen application under risk. Because of random shocks between subsequent production stages, optimal fertilization decisions depend on the magnitude of farmers' risk aversion (risk premium), and the possibility for farmers to process information (value of information). We propose a joint estimation procedure of technology and risk aversion parameters, using a structural, simulation‐based econometric procedure. Parameter estimates allow to compute both the value of information and the risk premium, which account for about 30% of fertilizer cost for Midwest corn producers.