Data/hora: 06/06/2024 17:05:13

Provedor de dados: | 31
País: | United States
Título: | Indifference Pricing of Weather Insurance
Autores: | Xu,   Wei; Odening,   Martin; Musshoff,   Oliver.
Data: | 2007-07-27
Ano: | 2007
Palavras-chave: | Weather insurance; Indifference pricing model; Basis risk; Risk and Uncertainty.
Resumo: | This article develops an Indifference Pricing model for a weather derivative that is traded over the counter. The model is used to calculate ask and bid prices for a put option on a weather index in Germany. We find that under moderate risk aversion the maximal bid prices of grain producers exceed the minimal sell prices of insurers only for a few regions and crops, due to the presence of basis risk. Another finding is that the actuarially fair price may lead to wrong conclusions about the market potential of weather insurance.
Tipo: | Conference Paper or Presentation
Idioma: | Inglês

Identificador:

26944

http://purl.umn.edu/9267

Editor: | AgEcon Search

Relação:

European Association of Agricultural Economists&gt;101st Seminar, July 5-6, 2007, Berlin Germany

Seminar Paper

Formato:

18

application/pdf