U.S. Farmers’ Insurance Choices under Expected Utility Theory and Cumulative Prospect Theory

Towards explaining regional differences in U.S. farmers’ crop insurance choices, we propose a budget heuristic effect within the standard Expected Utility Theory (EUT) framework and conduct theoretical and simulation analyses. We also disentangle the effects of various aspects the cumulative prospect theory (CPT) framework in a separate simulation analysis.


Issue Date:
May 25 2016
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/236019
Total Pages:
29
JEL Codes:
D81; D82; G22; G28; Q12; Q18
Series Statement:
P10006




 Record created 2017-04-01, last modified 2017-08-29

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