Is Area Yield Insurance Competitive with Farm Yield Insurance?
This article compares risk reduction from MPCI and GRP crop insurance contracts. The analysis extends and improves on the existing area-yield insurance literature in four important respects. First, the geographical scope greatly exceeds that of previous work. Second, unlike previous efforts, the are...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Western Agricultural Economics Association
2005-08-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/31216 |
| _version_ | 1818021352453439488 |
|---|---|
| author | Barry J. Barnett J. Roy Black Yingyao Hu Jerry R. Skees |
| author_facet | Barry J. Barnett J. Roy Black Yingyao Hu Jerry R. Skees |
| author_sort | Barry J. Barnett |
| collection | DOAJ |
| description | This article compares risk reduction from MPCI and GRP crop insurance contracts. The analysis extends and improves on the existing area-yield insurance literature in four important respects. First, the geographical scope greatly exceeds that of previous work. Second, unlike previous efforts, the area is not assumed to consist only of those farms included in the analysis. Third, the analysis is based on the actual GRP indemnity function rather than the area-yield indemnity function commonly used in the literature. Fourth, the analysis avoids the questionable assumption that GRP scale can be optimized at the individual farm level. Even with a number of conservative assumptions favoring MPCI relative to GRP, results indicate that at least for some crops and regions GRP is a viable alternative to MPCI. |
| first_indexed | 2024-04-14T08:17:43Z |
| format | Article |
| id | doaj.art-d07c44f3cdab4de4b4bed347ac8e9701 |
| institution | Directory Open Access Journal |
| issn | 1068-5502 2327-8285 |
| language | English |
| last_indexed | 2024-04-14T08:17:43Z |
| publishDate | 2005-08-01 |
| publisher | Western Agricultural Economics Association |
| record_format | Article |
| series | Journal of Agricultural and Resource Economics |
| spelling | doaj.art-d07c44f3cdab4de4b4bed347ac8e97012022-12-22T02:04:21ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852005-08-0130228530110.22004/ag.econ.3121631216Is Area Yield Insurance Competitive with Farm Yield Insurance?Barry J. BarnettJ. Roy BlackYingyao HuJerry R. SkeesThis article compares risk reduction from MPCI and GRP crop insurance contracts. The analysis extends and improves on the existing area-yield insurance literature in four important respects. First, the geographical scope greatly exceeds that of previous work. Second, unlike previous efforts, the area is not assumed to consist only of those farms included in the analysis. Third, the analysis is based on the actual GRP indemnity function rather than the area-yield indemnity function commonly used in the literature. Fourth, the analysis avoids the questionable assumption that GRP scale can be optimized at the individual farm level. Even with a number of conservative assumptions favoring MPCI relative to GRP, results indicate that at least for some crops and regions GRP is a viable alternative to MPCI.https://ageconsearch.umn.edu/record/31216area yield insurancemultiple peril crop insurancerisk reduction |
| spellingShingle | Barry J. Barnett J. Roy Black Yingyao Hu Jerry R. Skees Is Area Yield Insurance Competitive with Farm Yield Insurance? Journal of Agricultural and Resource Economics area yield insurance multiple peril crop insurance risk reduction |
| title | Is Area Yield Insurance Competitive with Farm Yield Insurance? |
| title_full | Is Area Yield Insurance Competitive with Farm Yield Insurance? |
| title_fullStr | Is Area Yield Insurance Competitive with Farm Yield Insurance? |
| title_full_unstemmed | Is Area Yield Insurance Competitive with Farm Yield Insurance? |
| title_short | Is Area Yield Insurance Competitive with Farm Yield Insurance? |
| title_sort | is area yield insurance competitive with farm yield insurance |
| topic | area yield insurance multiple peril crop insurance risk reduction |
| url | https://ageconsearch.umn.edu/record/31216 |
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