@article{Bokusheva:122443,
      recid = {122443},
      author = {Bokusheva, Raushan and Conradt, Sarah},
      title = {Catastrophic crop insurance effectiveness: does it make a  difference how yield losses are conditioned?},
      address = {2012-04-10},
      number = {706-2016-48341},
      pages = {14},
      month = {Apr},
      year = {2012},
      abstract = {The study evaluates the effectiveness of a catastrophic  drought-index insurance developed by applying two  alternative methods - the standard regression analysis and  the copula approach. Most empirical analyses obtain  estimates of the dependence of crop yields on weather  by
employing linear regression. By doing so, they assume  that the sensitivity of yields to weather remains constant  over the whole distribution of the weather variable and can  be captured by the effect of the weather index on the yield  conditional mean. In our study we evaluate, whether the  prediction of farm yield losses can be done more accurately  by conditioning yields on extreme realisations of a weather  index. Therefore, we model the dependence structure between  yields and weather by employing the copula approach. Our  preliminary results suggests that the use of copulas might  be a more adequate way to design and rate weather-based  insurance against extreme events.},
      url = {http://ageconsearch.umn.edu/record/122443},
      doi = {https://doi.org/10.22004/ag.econ.122443},
}