@article{Bercammen:232271,
      recid = {232271},
      author = {Bercammen, James and Pannell, David J.},
      title = {The Economics of Crop Hail Insurance},
      address = {1996},
      number = {1785-2016-141936},
      series = {Discussion Papers},
      pages = {24},
      year = {1996},
      abstract = {A stylized model of crop hail insurance is developed to  examine the properties of the
demand for such insurance.  Only in the simplest case (i.e., a static model with  no
hail-free crop revenue uncertainty) do the results  resemble those conforming to the
standard theory of  insurance. Allowing for crop revenue uncertainty and  for
dynamic updating both induce the farmer to underinsure  despite an actuarially fair
premium rate. The  underinsurance result also emerges in a more general model  •
where hail insurance is purchased along with an all-risk  insurance contract. In this
more general model, two  alternative approaches currently in use in North  America
are examined and their efficiency properties  compared.},
      url = {http://ageconsearch.umn.edu/record/232271},
      doi = {https://doi.org/10.22004/ag.econ.232271},
}