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Can Crop Insurance Premiums be Reliably Estimated? AgEcon
Ramirez, Octavio A.; Carpio, Carlos E.; Rejesus, Roderick M..
The objective of this paper is to compare the accuracy of crop insurance rating methods based on historical liability and indemnity data (similar to the procedure currently used by the Risk Management Agency) and “yield distribution” approaches. Estimated rates are compared to “true” rates using empirically-grounded simulation procedures that take into account common data availability constraints. Simulation results suggest that farm and county level rate estimates using the “yield distribution” approach are significantly more accurate than those based on historical indemnity and liability records.
Tipo: Conference Paper or Presentation Palavras-chave: Crop insurance premiums; Non-normal distributions; Simulation methods; Agribusiness; Agricultural Finance; Risk and Uncertainty.
Ano: 2009 URL: http://purl.umn.edu/49465
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The Law of the Minimum and Sources of Nonzero Skewness for Crop Yield Distributions AgEcon
Tumusiime, Emmanuel; Brorsen, B. Wade; Boyer, Christopher N..
Crop yields are not commonly found to be normally distributed, but the cause of the non-normal distribution is unclear. The non-normality might be due to weather variables and/or an underlying von Liebig law of the minimum (LoM) production function. Our objective is to determine the degree to which an underlying linear response stochastic plateau production function can explain the skewness of Oklahoma wheat yields at varied nitrogen rates. We use farm-level wheat data from a long-term experiment in Oklahoma, which is a unique data set to the literature. The Tembo et al. (2008) production function provides negative skewness at all levels of nitrogen with skewness near zero for both very high and very low levels of nitrogen. Observed skewness for wheat...
Tipo: Conference Paper or Presentation Palavras-chave: Linear plateau model; Non-normal distributions; Skewness; Wheat; Yield distribution; Production Economics; Risk and Uncertainty; Q10.
Ano: 2011 URL: http://purl.umn.edu/98820
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