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| Meuwissen, Miranda P.M.; Huirne, Ruud B.M.; Hardaker, J. Brian. |
| Arrow (1965) stated that making markets for trading risk more complete can be socially beneficial. Within this perspective, we discuss the feasibility of farm revenue insurance for Australian agriculture. The feasibility is first discussed from an insurer's point of view. Well-known problems of moral hazard, adverse selection and systemic risk are central. Then, the feasibility is studied from a farmer’s point of view. A simulation model illustrates that gross revenue insurance can be both cheaper and more effective than separate price and yield insurance schemes. We argue that due to the systemic nature of price and yields risks within years and the positive correlation between years, some publicprivate partnership for reinsurance may be necessary for... |
| Tipo: Presentation |
Palavras-chave: Farm revenue insurance; Income stability; Public/private partnership; Risk and Uncertainty. |
| Ano: 1999 |
URL: http://purl.umn.edu/124090 |
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