Application of Weather Derivatives in Multi-Period Risk Management

Abstract

This work is a first attempt to analyze the effect of weather derivative availability on the risk management strategies in a multi-period setting, when crop activities take place twice a year. Rice production in Ecuador is used as a case study. Numerical solutions show farmers improve their well-being by reducing their risk exposure.Weather Derivatives, Risk Management, Multi-Period., Agribusiness, Agricultural Finance, Risk and Uncertainty, Q13, Q14,