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| Carriquiry, Miguel A.; Babcock, Bruce A.; Hart, Chad E.. |
| The effect of sampling error in estimation of farmers' mean yields for crop insurance purposes is explored using farm-level corn yield data in Iowa from 1990 to 2000 and Monte Carlo simulations. We find that sampling error combined with nonlinearities in the insurance indemnity function will result in empirically estimated crop insurance rates that exceed actuarially fair values by between 2 and 16 percent, depending on the coverage level and the number of observations used to estimate mean yields. Accounting for the adverse selection caused by sampling error results in crop insurance rates that will exceed fair values by between 42 and 127 percent. We propose a new estimator for mean yields based on a common decomposition of farm yields into systemic and... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Actual production history (APH); Crop insurance; Mean yields estimation; Sampling error; Farm Management. |
| Ano: 2005 |
URL: http://purl.umn.edu/18600 |
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| Starbird, S. Andrew; Amanor-Boadu, Vincent. |
| One of the goals of inspection and traceability is to motivate suppliers to deliver safer food. The ability of these policies to motivate suppliers depends on the accuracy of the inspection, the cost of failing inspection, the cost of causing a foodborne illness, and the proportion of these costs paid by the supplier. We develop a model of the supplier's expected cost as a function of inspection accuracy, the cost of failure, and the proportion of the failure cost that is allocated to suppliers. The model is used to identify the conditions under which the supplier is motivated to deliver uncontaminated lots. Surprisingly, our results show that when safety failure costs can be allocated to suppliers, minimum levels of inspection error are required to... |
| Tipo: Journal Article |
Palavras-chave: Diagnostic error; Food safety; Inspection; Sampling error; Traceability; Food Consumption/Nutrition/Food Safety. |
| Ano: 2006 |
URL: http://purl.umn.edu/10143 |
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