000174315 001__ 174315
000174315 005__ 20180122233349.0
000174315 037__ $$a329-2016-13214
000174315 041__ $$aen_US
000174315 084__ $$aG12
000174315 084__ $$aH2
000174315 084__ $$aQ18.
000174315 245__ $$aTail Dependence is to be Expected Among Crop Yields
000174315 246__ $$aTail Dependence of Crop Yield
000174315 260__ $$c2014
000174315 269__ $$a2014
000174315 270__ $$pHennessy,   David
000174315 336__ $$aConference Paper/ Presentation
000174315 520__ $$aRate setting methods for crop yield and revenue contracts employ methods that presume that correlations are state invariant. Whether this is true matters. If yield-yield correlations strengthen when crops are subject to widespread stress then diversification opportunities for private insurers weaken when most needed. For the government’s book of business, such tail dependence will increase the transactions and political costs of inter-agency reallocation of funds. In this paper we propose a simple model of yields according to interactions between the weather outcome and land limitations as in the United States Soil Conservation Service’s land capability classification. Our model shows that yield-yield tail dependence is to be expected and, furthermore, should take a particular form. Yield correlations should be stronger in the left and right tails than in the center, i.e., U shaped state-conditional correlation is hypothesized. Using Risk Management Agency unit level data and a variety of statistics, we find strong evidence in favor of the U shaped tail dependence hypothesis. But the goodness-of-fit test fails to reject the standard Gaussian Copula model, which can be due to power of the tests, sampling error, and/or relatively weak tail dependence over the sample years. We conclude that existing RMA rate-setting methods are deficient.
000174315 542__ $$fLicense granted by Xiaodong Du (xdu23@wisc.edu) on 2014-06-30T14:23:41Z (GMT):

<center>  <h2> Deposit Agreement </h2> </center>
I represent that I am the creator of the digital material identified herein (&ldquo;Work&rdquo;).
I represent that the work is original and that I either own all rights of copyright 
or have the right to deposit the copy in a digital archive such as AgEcon Search. 
I represent that in regard to any non-original material included in the Work I have
secured written permission of the copyright owner (s) for this use or believe this 
use is allowed by law. I further represent that I have included all appropriate 
credits and attributions. I hereby grant the Regents of the University of Minnesota
(&ldquo;University&rdquo;), through AgEcon Search, a non-exclusive right to access, reproduce, 
and distribute the Work, in whole or in part, for the purposes of security, preservation,
and perpetual access. I grant the University a limited, non-exclusive right to make
derivative works for the purpose of migrating the Work to other media or formats in
order to preserve access to the Work. I do not transfer or intend to transfer any 
right of copyright or other intellectual property to the University. If the Deposit 
Agreement is executed by the Author�s Representative, the Representative shall separately
execute the following representation: I represent that I am authorized by the Author
to execute this Deposit Agreement on behalf of the Author.

000174315 650__ $$aCrop Production/Industries
000174315 650__ $$aRisk and Uncertainty
000174315 6531_ $$aactuarial fairness
000174315 6531_ $$acrop insurance
000174315 6531_ $$aGaussian copula
000174315 6531_ $$areinsurance
000174315 6531_ $$asystemic risk
000174315 700__ $$aDu, Xiaodong
000174315 700__ $$aHennessy, David
000174315 700__ $$aFeng, Hongli
000174315 773__ $$d2014
000174315 8564_ $$s904009$$uhttp://ageconsearch.umn.edu/record/174315/files/AAEA%202014%20Tail_Dependence_Du_Hennessy_Feng.pdf
000174315 887__ $$ahttp://purl.umn.edu/174315
000174315 909CO $$ooai:ageconsearch.umn.edu:174315$$pGLOBAL_SET
000174315 912__ $$nSubmitted by Xiaodong Du (xdu23@wisc.edu) on 2014-06-30T14:26:18Z
No. of bitstreams: 1
AAEA 2014 Tail_Dependence_Du_Hennessy_Feng.pdf: 904009 bytes, checksum: 2191b0bf431eaf729f56873c3ff58cb2 (MD5)
000174315 912__ $$nMade available in DSpace on 2014-06-30T14:26:19Z (GMT). No. of bitstreams: 1
AAEA 2014 Tail_Dependence_Du_Hennessy_Feng.pdf: 904009 bytes, checksum: 2191b0bf431eaf729f56873c3ff58cb2 (MD5)
  Previous issue date: 2014
000174315 982__ $$gAgricultural and Applied Economics Association>2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota
000174315 980__ $$a329