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Please use this identifier to cite or link to this item: http://purl.umn.edu/132375

Title: Evaluation of Risk Reductions Associated with Multi-Peril Crop Insurance Products
Authors: Schnitkey, Gary D.
Sherrick, Bruce J.
Irwin, Scott H.
Issue Date: 2002
Abstract: This study evaluates the impacts on gross revenue distributions of the use of alternative crop insurance products across different coverage levels and across locations with differing yield risks. Results are presented in terms of net costs, values-at-risk, and certainty equivalent returns associated with five types of multi-peril crop insurance across different coverage levels. Findings include that the group policies often result in average payments exceeding their premium costs. Individual revenue products reduce risk in the tails more than group policies but result in greater reductions in mean revenues. Rankings based on certainty equivalent returns and low frequency VaRs generally favor revenue products. As expected, crop insurance is associated with greater relative risk reduction in locations with greater underlying yield variability
URI: http://purl.umn.edu/132375
Institution/Association: Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition >Proceedings: 2002 Regional Committee NC-221, October 7-8, 2002, Denver, Colorado
Total Pages: 25
Collections:Proceedings: 2002 Regional Committee NC-221, October 7-8, 2002, Denver, Colorado

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