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Torts and the Protection of "Legally Recognized" Interests 31
Hoffmann, Sandra A.; Hanemann, W. Michael.
The law of torts plays an important role in completing the legal property rights system by defining the extent to which property is protected from harm. It does this by defining the kinds of interests that will be recognized and protected from harm by the courts, the duty of care owed these recognized interests by others, and the manner in which they will be protected through monetary compensation, restitution, or injunction. Together, these three elements of torts define a right in the "bundle of rights" that constitute property. In this paper, we develop a systematic approach to formalizing the nature of the property rights protected by tort law. We use this approach to reexamine the literature on compensation for nonpecuniary damages. This reexamination...
Tipo: Working or Discussion Paper Palavras-chave: Torts; Property rights; Liability; Compensation; Damages; Insurance; Research and Development/Tech Change/Emerging Technologies; D31; D63; K0; K13.
Ano: 2005 URL: http://purl.umn.edu/10472
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Insure or Invest in Green Technologies to Protect Against Adverse Weather Events? 31
Pietola, Kyosti; Myyra, Sami; Niemi, Jarkko K.; Van Asseldonk, Marcel A.P.M..
This paper analyses investments in green technologies when insurance is also an option. Green technologies are defined to have the power to increase productivity and decrease volatility of future revenues. The insurance options involve the scale and coverage either in a yield insurance or in an index insurance. The stochastic process is a combination of insurable stationary short-run process and non-stationary long run process. The optimal decision rules are solved numerically by stochastic dynamic programming. The results suggest that the index insurance maintains market based incentives to invest in green technologies whereas a yield insurance substantially decreases investments, as expected. An actuarially fair yield insurance decreases investments at...
Tipo: Working or Discussion Paper Palavras-chave: Investment; Insurance; Uncertainty; Dynamic programming; Green technology; Agribusiness; Agricultural Finance; Financial Economics; Risk and Uncertainty.
Ano: 2011 URL: http://purl.umn.edu/100738
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Insuring Rural China's Health? An Empirical Analysis of China's New Cooperative Medical System 31
Zhang, Linxiu; Wang, H. Holly; Rozelle, Scott; Yan, Yuanyuan.
Although health is an important factor in economic development, millions of China's rural residents have no medical coverage. Nearly 10 percent of those that were sick in rural China consciously did not seek medical care, mostly because of financial constraints. More than 25% of rural residents are dissatisfied with their village's health system. In response to this deteriorating situation, a new cooperative medical system (NCMS) was initialized in rural China in 2003 by the government. However, after two years of trials, there has been no household-based, economic analysis of the program. This paper provides one of the first. Although where introduced, most rural residents voluntarily participate, there are many problems with the program. First, at least...
Tipo: Conference Paper or Presentation Palavras-chave: Rural Health; Insurance; Targeting; Design Problems; China; Health Economics and Policy; I11; O15; O53.
Ano: 2006 URL: http://purl.umn.edu/25586
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Livestock Revenue Insurance 31
Hart, Chad E.; Babcock, Bruce A.; Hayes, Dermot J..
This study outlines several possible structures for livestock revenue insurance. The policies take the form of an exotic option—an Asian basket option. The actuarially fair premiums for these policies are equal to the prices of the options they represent. Due to the complexity of pricing Asian basket options, we have combined two techniques for pricing options to reach the actuarially fair premiums. Projected premiums, producer welfare, and program efficiency are evaluated for the insurance products and existing market tools. Using efficiency ratios and certainty equivalent returns, we compare the insurance policies to strategies involving existing futures and options.
Tipo: Working or Discussion Paper Palavras-chave: Insurance; Livestock; Revenue; Options; Asian basket option; Premiums; Livestock Production/Industries; Risk and Uncertainty.
Ano: 2000 URL: http://purl.umn.edu/18356
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USING INSURANCE TO ENHANCE NITROGEN FERTILIZER APPLICATION TIMING TO REDUCE NITROGEN LOSSES 31
Huang, Wen-Yuan.
Nitrogen applied before planting is more vulnerable to loss to the environment than nitrogen applied during the growing season, but the growing season application can increase the risk of lower yields caused by adverse weather that prohibits farmers to complete N application. An expected utility framework is used to illustrate the potential economic benefit of insurance for a farmer to reduce this risk of cost. An expected-value variance analysis is used to illustrate the potential benefit of insurance to Iowa corn growers who apply N fertilizer only during the growing season.
Tipo: Journal Article Palavras-chave: Insurance; Nitrogen fertilizer; Application timings; Risk and Uncertainty.
Ano: 2002 URL: http://purl.umn.edu/15520
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Infrequent Shocks and Rating Revenue Insurance: A Contingent Claims Approach 31
Richards, Timothy J.; Manfredo, Mark R..
Revenue insurance represents an important new risk management tool for agricultural producers. While there are many farm-level products, Group Risk Income Protection (GRIP) is an area-based alternative. Insurers set premium rates for GRIP on the assumption of a continuous revenue distribution, but discrete events may cause the actual value of insurance to differ by a significant amount. This study develops a contingent claims approach to determining the error inherent in ignoring these infrequent events in rating GRIP insurance. An empirical example from the California grape industry demonstrates the significance of this error and suggests an alternative method of determining revenue insurance premiums.
Tipo: Journal Article Palavras-chave: Black-Scholes; Contingent claim; Grapes; Insurance; Jump-diffusion; Option pricing; Risk and Uncertainty.
Ano: 2003 URL: http://purl.umn.edu/31094
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Expanding the National Flood Insurance Program to Cover Coastal Erosion Damage 31
Keeler, Andrew G.; Kriesel, Warren; Landry, Craig E..
This paper uses the results of a nationwide survey of coastal property owners to estimate the demand for insurance against erosion damage. The National Flood Insurance Program (NFIP) does not technically cover such damage, although in practice there is considerable uncertainty about this point. The ability to insure against such losses has implications for the choice of beach management strategies and for NFIP management. We find significant demand for insurance at prices in the range of current flood insurance premiums, although median willingness to pay appears to be less than cost of providing such insurance.
Tipo: Journal Article Palavras-chave: Coastal erosion; Insurance; Risk; Q24; G22; H41.
Ano: 2003 URL: http://purl.umn.edu/43199
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Agricultural Insurances Based on Meteorological Indices: Realizations, Methods and Research Agenda 31
Leblois, Antoine; Quirion, Philippe.
In many low-income countries, agriculture is mostly rain-fed and yields highly depend on climatic factors. Furthermore, farmers have little access to traditional crop insurance, which suffers from high information asymmetry and transaction costs. Insurances based on meteorological indices could fill this gap since they do not face such drawbacks. However their implementation has been slow so far. In this article, we first describe the most advanced projects that have taken place in developing countries using these types of crop insurances. We then describe the methodology that has been used to design such projects, in order to choose the meteorological index, the indemnity schedule and the insurance premium. We finally draw an agenda for research in...
Tipo: Working or Discussion Paper Palavras-chave: Agriculture; Insurance; Climatic Risk; Environmental Economics and Policy; G21; O12; Q12; Q18; Q54.
Ano: 2010 URL: http://purl.umn.edu/91004
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Determinants of Participation in a Catastrophe Insurance Programme: Empirical Evidence from a Developing Country 31
Akter, Sonia; Brouwer, Roy; Chowdhury, Saria; Aziz, Salina.
The paper presents empirical evidence of the determinants of catastrophe insurance participation in one of the poorest and most disaster prone countries in the world. In a large-scale household survey carried out in 2006 we ask 3,000 residents in six different districts in Bangladesh facing various environmental risk exposure levels about their willingness to participate in a catastrophe insurance programme. Combining factors put forward in risk theory and economics, we estimate a model of insurance participation. We show that the household decision to participate in the insurance programme differs depending on both exogenous and endogenous risk exposure levels. As predicted by micro-economic theory, ability to pay, measured in terms of household income...
Tipo: Conference Paper or Presentation Palavras-chave: Natural disasters; Catastrophe; Insurance; Participation; Risk; Bangladesh; Consumer/Household Economics; Environmental Economics and Policy; International Development; Risk and Uncertainty; Q54.
Ano: 2008 URL: http://purl.umn.edu/5984
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Fruit Policies in Japan 31
Ito, Kenzo; Dyck, John H..
Government programs and subsidies regulate and support Japan’s large fruit-production sector, bolstering farm incomes and output levels. Supply-management programs that target annual production levels for some fruits, in order to maintain market prices, contribute to higher prices for consumers, although other programs aim to increase fruit consumption. Japan’s tariffs and phytosanitary measures also create barriers to fruit consumption and limit imports. Producers in the United States, a major fruit supplier to Japan, could benefit from reduced barriers.
Tipo: Report Palavras-chave: Japan; Fruits; Policies; Production; Subsidies; Insurance; Farm markets; Tariffs; Phytosanitary measures; U.S. Department of Agriculture; USDA; Economic Research Service; ERS; FTS-341-01; Agricultural and Food Policy; Crop Production/Industries; International Relations/Trade.
Ano: 2010 URL: http://purl.umn.edu/92336
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Efficiency of Selected Risk Management Instruments - An Empirical Analysis of Risk Reduction in Kazakhstani Crop Production 31
Heidelbach, Olaf.
Recent academic discussion regarding crop insurance in developing and transition countries has focused on weather index insurance. But empirical analyses of such schemes based on farm level data cannot be found in the literature, though this insurance type shows clear advantages compared to multiple-peril crop insurance and revenue insurance. Recent empirical applications of risk and stochastic programming models focus on the optimisation of production planning, while literature on the effects of crop insurance on the farm level mainly focuses on the empirical investigation of reductions in farm income variance. The novelty of this paper is that it integrates regionally-adapted insurance products and expert-evaluated technology choices into a programming...
Tipo: Conference Paper or Presentation Palavras-chave: Risk; Risk management; Insurance; Agriculture; Kazakhstan; Crop Production/Industries; Risk and Uncertainty; Q12; Q14; G22; D82.
Ano: 2006 URL: http://purl.umn.edu/25243
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Basis Risk and Weather Hedging Effectiveness 31
Woodard, Joshua D.; Garcia, Philip.
Basis risk has been cited as a primary concern for implementing weather hedges. This study investigates several dimensions of weather basis risk for the U.S. corn market at various levels of aggregation. The results suggest that while the degree of geographic basis risk may be significant in some instances, it should not preclude the use of geographic cross-hedging. In addition, the degree to which geographic basis risk impedes effective hedging diminishes as the level of spatial aggregation increases. In fact, geographic basis risk is actually negative in the case most representative of a reinsurance hedge, and the reduction in risk from employing straightforward temperature derivatives is significant. Finally, precipitation hedges are found to introduce...
Tipo: Conference Paper or Presentation Palavras-chave: Weather Derivatives; Basis Risk; Spatial Aggregation; Insurance; Hedging Effectiveness; Agricultural Finance; Marketing; Risk and Uncertainty.
Ano: 2007 URL: http://purl.umn.edu/9254
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Effectiveness of information communication technology in rural insurance 31
Thamodaran, Varadaraju; Ramesh, Mahalingam.
Information and communications technologies are a device set of technological tools and resources used to communicate rural people about to disseminate awareness, create interest and to stimulate enroll intentions of insurance. It has enabled countries to leapfrog traditional modes of service delivery and make manifold improvements in process effectiveness and efficiency. Widespread adoption and application of information communication technology across the different fields of society and the economy is presently considered to be the key factor behind boosting competitiveness and developing an informed society. In general, information communication technology and its tools that people use to share, distribute, information gathering and to communicate with...
Tipo: Journal Article Palavras-chave: Insurance; ICT; Effectiveness; Rural people; Media.; Agricultural Finance; M17.
Ano: 2010 URL: http://purl.umn.edu/96026
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Health Care Reform and Farm Women’s Off-Farm Labor Force Participation: Evidence from Taiwan 31
Liao, Pei-An; Taylor, J. Edward.
Do non-wage fringe benefits affect women’s off-farm work decisions? We test the impact of the 1995 introduction of universal National Health Insurance (NHI) in Taiwan on off-farm labor force participation (LFP) among farm wives. Our results, based on a difference-in- differences approach, indicate that employment-delinked NHI reduced farm wives’ off-farm LFP by 9.6 to 13.6 percentage points. The larger impact was for wives from small farm households. The health insurance reform had a larger negative impact on overall LFP among married women in agricultural households than in nonagricultural households.
Tipo: Journal Article Palavras-chave: Agricultural households; Difference-in-differences; Farm wives; Health care; Insurance; Labor force participation; Off-farm; Taiwan; Health Economics and Policy; Labor and Human Capital.
Ano: 2010 URL: http://purl.umn.edu/93218
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THE ROLE OF RESEARCH IN PRODUCER RISK MANAGEMENT 31
Coble, Keith H.; Barnett, Barry J..
Agricultural economists have for many decades concerned ourselves with gaining an understanding of individual behavior when confronted with risk, and developing tools to address decision-making under risk. This area of research has recently gained renewed attention for a variety of reasons. This paper attempts to provide a review of the current status of risk related research, to assess areas where we have made significant progress, and also areas where expected benefits of future work are greatest. Theoretical advancements have contributed to our understanding of portfolio trade-offs, optimal input and output decisions, and the use of instruments such as futures and insurance. Advances in the ability to quantify risk with more robust methodologies...
Tipo: Working or Discussion Paper Palavras-chave: Risk; Insurance; Research; Risk and Uncertainty.
Ano: 1999 URL: http://purl.umn.edu/15803
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An Insurance Approach to Risk Management in the Ethanol Industry 31
Paulson, Nicholas D.; Babcock, Bruce A.; Hart, Chad E.; Hayes, Dermot J..
The vast majority of crop and revenue insurance policies sold in the United States are single-crop policies that insure against low yields or revenues for each crop grown on the farm. But, increasingly, producer income is based more on the value of crops that have been converted into a value-added product such as ethanol. Moreover, the recent increases in energy and com-modity price levels and volatilities emphasize the importance of risk management to ethanol investors. This paper uses an insurance approach to outline a risk management tool which mimics the gross margin level of a typical corn-based ethanol plant. The gross margin, pre-mium, and indemnity levels are calculated on a per bushel basis to enable producers/investors to utilize the product...
Tipo: Journal Article Palavras-chave: Corn-based ethanol; Insurance; Risk management; Correlation; Monte Carlo; Resource /Energy Economics and Policy; Risk and Uncertainty.
Ano: 2008 URL: http://purl.umn.edu/44738
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Effects of Private Insurance on Forest Landowners' Incentives to Sequester and Trade Carbon under Uncertainty: Impact of Hurricanes 31
Grover, Mansi; Bosch, Darrell J.; Preisley, Stephen P..
We evaluate incentives of forest landowners for sequestering and trading carbon, given the risk of carbon loss from hurricanes, and an opportunity to insure their losses. Results of simulation model reveal that the effect of hurricane risk depends on the variability of returns from carbon and timber and landowners' ability to mitigate risk by diversifying forest holdings across regions or transferring risk by purchasing insurance.
Tipo: Conference Paper or Presentation Palavras-chave: Carbon Sequestration; Emissions Trading; Natural Disaster; Risk; Insurance; Risk and Uncertainty; Q54; Q58.
Ano: 2005 URL: http://purl.umn.edu/19516
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Funding Animal Healthcare Systems: Mechanisms and Options 31
Riviere-Cinnamond, Ana.
Consumer-driven demand for meat and dairy products is driving an increase in livestock production and demand for improved animal healthcare services. These must be effective, affordable and accessible to ensure a profitable livestock sector. Especially important are the needs of poor livestock keepers who may have no other means of livelihood and who, following privatisation, may have become excluded from animal healthcare services. Animal healthcare has far-reaching implications. Increased livestock production brings risks to public health from greater animal-human contact and zoonotic diseases. There are potential environmental hazards as well as issues of food safety and the need to ensure trade standards are met. But effective, comprehensive animal...
Tipo: Working or Discussion Paper Palavras-chave: Funding mechanisms; Taxes; Animal health services; Public finance; Hypothecation; Insurance; Decentralisation; Livestock Production/Industries.
Ano: 2004 URL: http://purl.umn.edu/23765
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Good News, Bad News: Results from a National Representative Panel Survey on China’s NCMS 31
Yi, Hongmei; Zhang, Linxiu; Singer, Kim; Rozelle, Scott; Atlas, Scott.
The overall goal of the paper is to understand the progress of the implementation of China’s New Cooperative Medical System (NCMS) program. In the paper we seek to assess the strengths and weaknesses of the program and understand its effect on rural residents using a panel of national-representative, household survey data that were collected in 2005 and early 2008. According to our data, we found that there have been substantial improvements to the NCMS in coverage and participation. The service received by rural residents also improved in 2007. While the progress of the NCMS program is clear, there are still weaknesses. Most importantly, the program clearly does not meet its goal of providing insurance against catastrophic illnesses. On average,...
Tipo: Conference Paper or Presentation Palavras-chave: Rural health; Insurance; China; Community/Rural/Urban Development; I1.
Ano: 2009 URL: http://purl.umn.edu/50104
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El seguro escolar gratuito y el seguro materno infantil: análisis de su incidencia e impacto sobre el acceso a los servicios de salud y sobre la equidad en el acceso 31
Jaramillo, Miguel; Parodi, Sandro.
A fines de la década pasada el gobierno peruano implementó dos seguros públicos para mejorar el acceso a los servicios de salud de las mujeres y de los niños más pobres de la población: el Seguro Escolar Gratuito (SEG) y el Seguro Materno Infantil (SMI). Según la teoría, dichos seguros deberían haber contribuido a disminuir las barreras de acceso a los servicios de salud, redistribuyendo recursos hacia los más pobres, e induciendo, por lo tanto, a una mejora en la equidad. El presente estudio intenta establecer si este objetivo logró concretarse en la realidad. Un primer nivel de análisis encuentra que la implementación de los seguros tuvo un efecto positivo sobre la cobertura ante los riesgos de salud y que tanto el SEG como el SMI se convirtieron en las...
Tipo: Working or Discussion Paper Palavras-chave: Seguros; Servicios de salud; Seguro escolar; Salud maternoinfantil; Perú; Insurance; Health services; School insurance; Maternal and child health; Peru; Health Economics and Policy; G22; I1.
Ano: 2004 URL: http://purl.umn.edu/37732
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