Climate and Weather Impacts on Agriculture: The Case of Brazil
نویسنده
چکیده
This paper innovates as it tests two different hypotheses regarding climate impacts on agricultural markets in Brazil: farmers only observe the average climate conditions of their region when deciding the type and amount of crop/animal to grow/raise; and weather diversions from normal climate conditions deviate farmers from their optimal profits. Both hypotheses are not rejected by the data. The modeling approach used is the translog profit frontier. The 2006 estimated loss from rainfall anomalies was 15 billion dollars (in values of December 2011).
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