@article{Doms:260821,
      recid = {260821},
      author = {Doms, Juliane  and Gerstmann, Henning  and Möller, Markus},
      title = {Modeling Of Dynamic Weather Indexes By Coupling Spatial  Phenological And Precipitation Data - A Practical  Application In The Context Of Weather Index-based  Insurances},
      address = {2017-08-29},
      number = {728-2017-2862},
      pages = {13},
      year = {2017},
      abstract = {A key challenge for the design of weather index insurances  (WII) is the presence of basis risk, i.e. the actual loss  of the insured farm is not fully covered by the insurance  payment. Basis risk can occur dependent on the distance  between the point of measurement of a specific weather  event and the farm’s location (spatial basis risk). The  present study aimed to derive spatial data sets and use  them for the design of test site- and phenological  phasespecific precipitation indexes. We studied for 20  German crop farms the hedging efficiency of WII, i.e. how  the variability of farm specific total gross margins would  have changed if farmers had purchased the designed WII. The  hedging efficiency is different from farm to farm and not  always a risk reduction (positive HE) results. Although  these might be not the best results, a new methodology to  minimize spatial basis risk could be introduced by  designing highly dynamic indexes, which are flexible and  precise in terms of time and space. The contribution of the  present study to the WII research is the analysis of the HE  of WII based on these indexes.},
      url = {http://ageconsearch.umn.edu/record/260821},
      doi = {https://doi.org/10.22004/ag.econ.260821},
}