MEASUREMENT OF PRICE RISK IN REVENUE INSURANCE: IMPLICATIONS OF DISTRIBUTIONAL ASSUMPTIONS

Roberts, Matthew C.; Goodwin, Barry K.; Coble, Keith H.

doi:10.22004/ag.econ.20840

MEASUREMENT OF PRICE RISK IN REVENUE INSURANCE: IMPLICATIONS OF DISTRIBUTIONAL ASSUMPTIONS

Roberts, Matthew C. ; Goodwin, Barry K. ; Coble, Keith H.

A variety of crop revenue insurance programs is now available. These programs require measurement of price risk. This article investigates the appropriateness of distributional assumptions underlying current and proposed alternative actuarial methods. Our results find that prices are best modeled using a flexible mixture of normals distribution.

Subject(s):

Demand and Price Analysis
Risk and Uncertainty

Issue Date:

1998

Publication Type:

Conference Paper/ Presentation

DOI and Other Identifiers:

10.22004/ag.econ.20840

Record Identifier:

https://ageconsearch.umn.edu/record/20840

PURL Identifier:

http://purl.umn.edu/20840