A Probabilistic Model of Crop Insurance Purchase Decision
This study proposes a probabilistic model of the individual crop insurance purchase decision that explicitly recognizes that neither the producer nor the insurer knows the exact value of the actuarially fair premium (AFP) underlying the desired policy. The model is used to explore the impact of key...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Western Agricultural Economics Association
2017-01-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/252751 |
| _version_ | 1817980585294954496 |
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| author | Octavio A. Ramirez J. Scott Shonkwiler |
| author_facet | Octavio A. Ramirez J. Scott Shonkwiler |
| author_sort | Octavio A. Ramirez |
| collection | DOAJ |
| description | This study proposes a probabilistic model of the individual crop insurance purchase decision that explicitly recognizes that neither the producer nor the insurer knows the exact value of the actuarially fair premium (AFP) underlying the desired policy. The model is used to explore the impact of key features of the insurer and producer AFP estimates on the probability that the producer will purchase insurance and other important indicators of program performance. The model is applied to assessing the merits of alternative premium estimation methods and to shed light on some major factors affecting the performance of the U.S. crop insurance program. |
| first_indexed | 2024-04-13T22:55:19Z |
| format | Article |
| id | doaj.art-d4cc567dd8fe4a7c878335ce385238f7 |
| institution | Directory Open Access Journal |
| issn | 1068-5502 2327-8285 |
| language | English |
| last_indexed | 2024-04-13T22:55:19Z |
| publishDate | 2017-01-01 |
| publisher | Western Agricultural Economics Association |
| record_format | Article |
| series | Journal of Agricultural and Resource Economics |
| spelling | doaj.art-d4cc567dd8fe4a7c878335ce385238f72022-12-22T02:26:02ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852017-01-01421102610.22004/ag.econ.252751252751A Probabilistic Model of Crop Insurance Purchase DecisionOctavio A. RamirezJ. Scott ShonkwilerThis study proposes a probabilistic model of the individual crop insurance purchase decision that explicitly recognizes that neither the producer nor the insurer knows the exact value of the actuarially fair premium (AFP) underlying the desired policy. The model is used to explore the impact of key features of the insurer and producer AFP estimates on the probability that the producer will purchase insurance and other important indicators of program performance. The model is applied to assessing the merits of alternative premium estimation methods and to shed light on some major factors affecting the performance of the U.S. crop insurance program.https://ageconsearch.umn.edu/record/252751agricultural riskcomparative staticscrop insurance program performanceestimation of crop insurance premiumsinsurance decision under uncertainty |
| spellingShingle | Octavio A. Ramirez J. Scott Shonkwiler A Probabilistic Model of Crop Insurance Purchase Decision Journal of Agricultural and Resource Economics agricultural risk comparative statics crop insurance program performance estimation of crop insurance premiums insurance decision under uncertainty |
| title | A Probabilistic Model of Crop Insurance Purchase Decision |
| title_full | A Probabilistic Model of Crop Insurance Purchase Decision |
| title_fullStr | A Probabilistic Model of Crop Insurance Purchase Decision |
| title_full_unstemmed | A Probabilistic Model of Crop Insurance Purchase Decision |
| title_short | A Probabilistic Model of Crop Insurance Purchase Decision |
| title_sort | probabilistic model of crop insurance purchase decision |
| topic | agricultural risk comparative statics crop insurance program performance estimation of crop insurance premiums insurance decision under uncertainty |
| url | https://ageconsearch.umn.edu/record/252751 |
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