ON CHOOSING A BASE COVERAGE LEVEL FOR MULTIPLE PERIL CROP INSURANCE CONTRACTS

For multiple peril crop insurance, the U.S. Department of Agriculture'’s Risk Management Agency estimates the premium rate for a base coverage level and then uses multiplicative adjustment factors to recover rates at other coverage levels. Given this methodology, accurate estimation of the base coverage level from 65% to 50%. The purpose of this analysis was to provide some insight into whether such a change should or should not be carried out. Not surprisingly, our findings indicate that the higher coverage level should be maintained as the base.


Issue Date:
1998-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31189
Published in:
Journal of Agricultural and Resource Economics, Volume 23, Number 2
Page range:
427-444
Total Pages:
18




 Record created 2017-04-01, last modified 2017-08-24

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