... of historical data availability in designing actuarially sound weather‐based instruments. Design/methodology/approach A Bayesian rainfall model utilizing spatial kriging and Markov chain Monte Carlo techniques is proposed to estimate rainfall histories from observed historical data. An example drought...

...J.M. Bewley; Boehlje; A.W. Gray; H. Hogeveen; S.J. Kenyon; S.D. Eicher; M.M. Schutz Purpose The purpose of this paper is to develop a dynamic, stochastic, mechanistic simulation model of a dairy business to evaluate the cost and benefit streams coinciding with technology investments. The model...

...Dasheng Ji; B. Wade Brorsen Purpose The purpose of this paper is to develop an option pricing model applicable to US options. The lognormality assumption that has typically been imposed with past binomial and trinomial option pricing models is relaxed. The relaxed lattice model is then used...

...Paul D. Gottlieb; Adesoji Adelaja Purpose This paper aims to build a mathematical model to determine the price of an acre of developable land, whether it is part of a large open tract (farm) or a smaller residential parcel that can legally be subdivided. The primary purpose of the model...

...” in crop insurance that result in uncertain indemnity payments when their crop does not meet contract specifications. Design/methodology/approach A stochastic dominance model is developed to evaluate alternative strategies for growers with differing risk attitudes and production practices (irrigation...