Summer school
Risk Analysis and Risk Management in Agriculture: Updates on Modelling and Applications - 3 ECTS
The farm sector is affected by a large and changing set of risk sources including more volatile producer prices, unusual weather patterns, upstream and downstream market power along the value chain, increasing dependence on financial institutions, and political risks. This induces the need for (new) risk management tools. Also the Common Agricultural Policy is considering risk management as an important component of agricultural policy.
Objectives
Participants will learn theories concerning risk analysis and risk coping strategies and will develop proficiency with software to facilitate the initiation of their own research in topics related to risk in agriculture. The course deals with both conceptual and methodological issues.
Target group and learning outcomes
The course is oriented toward PhD candidates, postdoctoral researchers and others with background in agricultural and applied economics.
After successful completion of this course students are expected to be able to:
- Understand theories underlying risk measurement and risk management decision making.
- Critically assess econometric analyses with regard to risk and risk management.
- Undertake empirical projects on the topics of behavioural economics, production risk, asymmetric information and resilience.
- Reflect on current (EU) policy developments with regard to risk management and resilience.
Assumed prior knowledge:
Before the start of the course students are required to have a basic understanding of statistics (Appendix A, B, and C from Wooldridge, 2015), econometrics (Chapters 1 and 2 from Wooldridge, 2015) and mathematical notation (Appendix D and E from Wooldridge, 2015). Further reading on Limited Dependent Variables Models (Chapter 17 from Wooldridge, 2015) and Panel Data Models (Chapters 13 and 14 from Wooldridge, 2015) is optional but highly suggested. We will work primarily with the software packages Stata and R. In order to get familiar with this software, please have a look at (i) introductory guides 1 ; 2 or more detailed tutorials 1 ; 2 for Stata and (ii) this introduction page for R.
Wooldridge, J. M. (2015). Introductory econometrics: A modern approach. Nelson Education.
Session Times
The course consists of theory and method sessions, divided in interactive plenary sessions and breakout sessions for the presentation of theoretical aspects and practical sessions to provide exposure to analytical exercises, simulations, and econometric estimations. Practical sessions will include applications of the theory, computer analyses with actual data sets, and interpretations in practice.
Outline of the course in hours
The course will involve daily sessions in which sessions on theory (3 hours, mornings) are alternated with practical sessions 4 hours, afternoons). During the practical sessions, open ended questions will be formulated that need to be completed in order to pass the course.
Course schedule
| Day | Morning | Afternoon | Evening |
|---|---|---|---|
| Day 1 24 June | 9.00-10.00 Introduction | 13.00-15.00 Utility | 17.30 Joint dinner |
| 10.00-12.00 Risk Theories | 15.00-17.00 Simulation and optimisation | ||
| Day 2 25 June | 9.00-10.00 Behavioural economics | 13.00-15.00 Risk attitudes | |
| 15.00-17.00 Behavioural economics | |||
| Day 3 26 June | 9.00-10.30 Measures of risk | 13.00-15.00 Risk measures | |
| 10.30-12.00 Production risk | 15.00-17.00 Production risk | ||
| Day 4 27 June | 9.00-10.30 Asymmetric information | 13.00-16.00 Asymmetric information | |
| 10.30-12.00 Risk management and insurance | 16.00-17.00 Policy debate on the role of risk in the new CAP | 17.15 Informal drinks | |
| Day 5 28 June | 9.00-11.30 From risk management to resilience | 13.30-16.00 Resilience measures | |
| 12.00-13.00 Seminar Busines Science | 16.00-17.00 Closing speach: State of the art & outlook |
Course materials
Reading materials prepared by the authors will be sent to participants in advance of the course. Articles and other accompanying materials will be distributed during the course.
Requirements and ECTS
Before the start of the course, participants submit a sheet with their expectations and background, and a definition of ‘risk’ in their own words (send to miranda.meuwissen@wur.nl before 18 June 2024). During the course, participants will answer open questions at the end of each day. Completion of these 5 assignments is required to be eligible for the 3 credits (according to ECTS).
Course fees
| WGS PhDs with TSP | € 300 |
| a) All other PhD candidates b) Postdocs and staff of the above mentioned Graduate Schools | € 640 |
| All others | € 900 |
The course fee includes additional training material, coffee/tea, lunches, a social dinner and informal reception.