|
|
|
|
| |
|
|
| Shen, Zhiwei; Odening, Martin. |
| The implementation of index-based crop insurance is often impeded by the existence of systemic risk of insured losses. We assess the effectiveness of two strategies for coping with systemic risk: regional diversification and securitization with catastrophe (CAT) bonds. The analysis is conducted in an equilibrium pricing framework which allows the optimal price of the insurance and the number of traded contracts to be determined. We also explore the role of basis risk and risk aversion of market agents. The model is applied to a hypothetical area yield insurance for rice producers in northeast China. If yields in two regions are positively correlated, we find that enlarging the insured area leads to an increasing insurance premium. Unless capital market... |
| Tipo: Presentation |
Palavras-chave: Crop insurance; Systemic risk; Risk pooling; Securitization; Risk and Uncertainty; Q11; Q14. |
| Ano: 2012 |
URL: http://purl.umn.edu/122555 |
| |
|
|
| Chen, Xi. |
| It has been widely recognized that the poor spends a significant proportion of their income on social spending even at the expense of basic consumption. What are the motives behind the observed lavish social spending among the poor? We attempt to test three competing explanations at the social link level, risk pooling, peer effect, and status concern, via a uniform framework based on a unique primary dataset. The data set include household information from a three wave census type household survey as well as a long term gift record for all households in three villages in a poor region in rural China. Our dyadic estimations confirm the prevalence of peer influence and the status seeking motive in shaping gift spending and its rapid growth, while... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Social Network; Peer Effect; Risk pooling; Status Seeking; Ceremony; Agribusiness; D63; D85; R20. |
| Ano: 2011 |
URL: http://purl.umn.edu/115516 |
| |
|
|
|
