@article{Rejesus:206598,
      recid = {206598},
      author = {Rejesus, Roderick M. and Coble, Keith H. and Miller, Mary  France and Boyles, Ryan and Goodwin, Barry K and Knight,  Thomas O.},
      title = {Accounting for Weather Probabilities in Crop Insurance  Rating},
      journal = {Journal of Agricultural and Resource Economics},
      address = {2015-05},
      number = {1835-2016-149533},
      pages = {19},
      year = {2015},
      abstract = {This article develops a procedure for weighting historical  loss cost experience based on longer
time-series weather  information. Using a fractional logit model and  out-of-sample competitions,
weather variables are selected  to construct an index that allows proper assessment of the  relative
probability  of  weather  events  that  drive   production  losses  and  to  construct  proper   “weather
weights” that are used in averaging historical  loss cost data. A variable-width binning approach
with  equal probabilities is determined as the best approach for  classifying each year in the shorter
historical loss cost  data used for rating. When the weather-weighting approach  described above
is applied, we find that the  weather-weighted average loss costs at the national level  are different
from the average loss costs without weather  weighting for all crops examined.},
      url = {http://ageconsearch.umn.edu/record/206598},
      doi = {https://doi.org/10.22004/ag.econ.206598},
}