Risk management activities of a non-industrial private forest owner with a bivariate utility function / Marielle Brunette ; Stéphane Couture in Revue d'Etudes en Agriculture et Environnement *, Vol.99, N°3-4 ([01/12/2018])

Public ISBD [article]  inRevue d'Etudes en Agriculture et Environnement * > Vol.99, N°3-4 [01/12/2018] . - pp 281–302 Titre : Risk management activities of a non-industrial private forest owner with a bivariate utility function Type de document : Article Auteurs : Marielle Brunette, Auteur ; Stéphane Couture, Auteur Année de publication : 2018 Article en page(s) : pp 281–302 Langues : Anglais (eng) Français (fre) Catégories : [Motbis 2025] assurance [Motbis 2025] forêt privée [Motbis 2025] risque Note de contenu : We analyze the insurance and self-insurance choices of a private forest owner whose utility is bivariate (consumption and forest amenity value). We show that under fair premium, full insurance is optimal only if the cross derivative of the utility function is equal to zero, whereas under unfair premium, optimal partial insurance is validated only if the cross derivative is positive. We also show that insurance and self-insurance may be substitutes, and if preferences are separable and the cost of insurance is not so high, then insurance and self-insurance are always considered as substitutes. However, we find in an illustration with a non-separable bivariate utility function, characterized by weights given to consumption and amenities, that insurance and self-insurance are complement. We obtain that the weight given to amenities substantially affects optimal risk management activities for unfair insurance. These results highlight the importance to represent the forest owner’s behavior through a bivariate utility function. [article] Risk management activities of a non-industrial private forest owner with a bivariate utility function [Article] / Marielle Brunette, Auteur ; Stéphane Couture, Auteur . - 2018 . - pp 281–302. Langues : Anglais (eng) Français (fre) in Revue d'Etudes en Agriculture et Environnement * > Vol.99, N°3-4 [01/12/2018] . - pp 281–302 Catégories : [Motbis 2025] assurance [Motbis 2025] forêt privée [Motbis 2025] risque Note de contenu : We analyze the insurance and self-insurance choices of a private forest owner whose utility is bivariate (consumption and forest amenity value). We show that under fair premium, full insurance is optimal only if the cross derivative of the utility function is equal to zero, whereas under unfair premium, optimal partial insurance is validated only if the cross derivative is positive. We also show that insurance and self-insurance may be substitutes, and if preferences are separable and the cost of insurance is not so high, then insurance and self-insurance are always considered as substitutes. However, we find in an illustration with a non-separable bivariate utility function, characterized by weights given to consumption and amenities, that insurance and self-insurance are complement. We obtain that the weight given to amenities substantially affects optimal risk management activities for unfair insurance. These results highlight the importance to represent the forest owner’s behavior through a bivariate utility function.

Exemplaires(1)

Code-barres	Cote	Support	Localisation	Section	Disponibilité
REV-00014155	Vol.99, N°3-4 [01/12/2018]	Revue	Archives sur place	Documentaires	Disponible

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