MORAL HAZARD AND BT CORN REFUGE

Using a principal-agent model, we find the optimal subsidy contract that induces grower compliance with Bt corn refuge requirements for managing insect resistance when asymmetric information exists concerning grower behavior. The optimal contract balances the cost of monitoring and the benefit of reducing the likelihood of insect resistance.


Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/22113
Total Pages:
29
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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