@article{Islam:202642,
      recid = {202642},
      author = {Islam, Zahirul and Turvey, Calum. G.},
      title = {COMPUTING EXPECTED YIELD LOSSES FOR CROP INSURANCE  COVERAGE : APPROPRIATENESS OF A 2-PARAMETER MODEL},
      journal = {Bangladesh Journal of Agricultural Economics},
      address = {1995-12-31},
      number = {454-2016-36619},
      series = {XVIII},
      pages = {12},
      month = {Dec},
      year = {1995},
      abstract = {This research examined the appropriateness of a  2-parameter model for crop insurance premium ratemaking.  Besides conventional way of calculating crop insurance  premium using normal curve theory, this study uses  empirical crop yield's distribution to measure downside  risk in approximating crop insurance premium. Statistical  means for all selected crops by country in Ontario with  respect to premium calculated under normal yield  distribution assumption (NPREM) and premium calculated  using empirical yield distribution (EPREM) are presented.  With respect to NPREM and EPREM, a significant statistical  difference between mean premiums by crops at various  coverage levels are found. This study argue that this  difference is mainly attributed to the differences in  downside risk. This issue is particularly important,  because rejecting a null hypothesis that NPREM and EPREM  are equivalent, suggest that approximation of the true  (i.e., empirical) distribution by a normal distribution may  bias insurance premiums. However the key finding is that in  determining crop insurance premium, the downside-risk  measured relative to a normal yield distribution function  does not necessarily violate research which determines crop  insurance premium using empirical crop yield's distribution  function.},
      url = {http://ageconsearch.umn.edu/record/202642},
      doi = {https://doi.org/10.22004/ag.econ.202642},
}