A PRIMER ON WEATHER DERIVATIVES
BARRIEU, P. *, and SCAILLET, O. **
* London School of Economics ** HEC Genève and Swiss Finance Institute
Abstract
We give a short introduction to weather derivatives.
We discuss what they are made for. We describe the markets on which they are
exchanged, and how they are used to promote agricultural risk transfer in developing
countries via the World Bank program. We also treat some specific issues such
as basis risk, pricing and design.
Keywords : weather derivatives, World Bank program.
JEL : G12, G13, Q54.