@article{Wang:285750,
      recid = {285750},
      author = {Wang, H. Holly and Krogmeier, Joseph L.},
      title = {Testing the Possibility of Private Crop Insurance and  Reinsurance Markets},
      address = {1999-04},
      series = {NCCC-134 Applied Commodity Price Analysis, Forecasting,  and Market Risk Management},
      year = {1999},
      abstract = {Risk theory tells us if an insurer can effectively pool a  large number of individuals to reduce the total risk, he  then can provide the insurance by charging a premium close  to the actuarially fair rate. There is a common belief that  only when the random loss is independent, the risk can be  effectively pooled, therefore because crop yield is not  independent among growers crop insurance market cannot  survive without government subsidy. In this paper, a weaker  condition, asymptotic nonpositive correlation (a.n.c.), is  presented as sufficient for effective risk pooling. US crop  yield data are used to test the hypothesis and we cannot  reject that US yields are a.n.c. As a result, private crop  insurance/reinsurance markets are expected to be able to  exist.},
      url = {http://ageconsearch.umn.edu/record/285750},
      doi = {https://doi.org/10.22004/ag.econ.285750},
}