Document Type

Poster

Conference

2014 AAEA Annual Meeting

Publication Date

7-2014

Conference Date

July 27–29, 2014

City

Minneapolis, MN

Abstract

One of the biggest obstacles for the development of private crop insurance markets is the systemic risk inherent in crop yields. Driven by spatially correlated weather events, crop losses are highly correlated within a certain area. As a result, the portfolio insurance risk has been raised prohibitively high for viable private crop insurance markets unless subsidized by the government. For example, the portfolio risk faced by U.S. crop insurers is about ten times larger than that of conventional insurance lines (Miranda and Glauber, 1997).

Language

en

File Format

application/pdf

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Article Location

 
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