Showing 1 - 10 of 40
This paper analyzes the potential trade offs and complementarities that exist between intra-year strategies employing annual price and yield risk contracts and inter-year self-insurance strategies involving intertemporal consumption substitution and borrowing, and examines whether standard crop...
Persistent link: https://www.econbiz.de/10005501183
Persistent link: https://www.econbiz.de/10005502972
Texas dryland upland cotton yields have historically exhibited greater variation and more distributional irregularities than the yields of other crops, raising concerns that conventional parametric distribution models may generate biased or otherwise inaccurate crop insurance premium rate...
Persistent link: https://www.econbiz.de/10005513904
Empirical evidence for the existence of moral hazard in the U.S. crop insurance program has been inconclusive. Here, we seek empirical evidence of moral hazard in the U.S. crop insurance program, departing from the established empirical literature in two significant respects. First, we attempt...
Persistent link: https://www.econbiz.de/10005522224
A dynamic, stochastic, rational expectations model of a peasant household with access to deposits and loans (up to a credit limit) is solved and simulated. If formal contracts offer more favorable rates than informal contracts, then access to formal contracts increases average consumption and...
Persistent link: https://www.econbiz.de/10005522977
This paper examines how insurance companies participating in delivery of crop insurance would change patterns of portfolio allocation across reinsurance funds in reaction to the 2005 Standard Reinsurance Agreement. The returns of insurance companies under the SRA are calculated using a...
Persistent link: https://www.econbiz.de/10005525439
The paper discusses a methodology for design and pricing of index insurance contracts for crop production. The methodology heavily relies on establishing a relationship between the index and yields in order to evaluate the contract performance in hedging farmers' risk. However, analysis of...
Persistent link: https://www.econbiz.de/10005536716
Very little attention has been given to the modeling of yield distribution for crops and regions in which yields exhibit irregular behavior. We undertake a statistical case study of Texas upland cotton and propose an alternative mixture distribution based on regime-switching model in which the...
Persistent link: https://www.econbiz.de/10005483707
This paper discusses how numerical techniques may be used to solve the simultaneous functional equations that arise in general dynamic stochastic games. Unlike the conventional linear-quadratic approach, our methods may be used to address general model specifications that may include...
Persistent link: https://www.econbiz.de/10005370721
This study assesses storage and trade of wheat in an integrated global economy. Domestic and international linkages are analyzed using a dynamic rational expectations model of the world wheat market. The results of this study demonstrate the importance of endogenizing both storage and trade in...
Persistent link: https://www.econbiz.de/10004979783