Demand and Risk Management Analysis of Rainfall Index Insurance PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Demand and Risk Management Analysis of Rainfall Index Insurance PDF full book. Access full book title Demand and Risk Management Analysis of Rainfall Index Insurance by Ashlee M. Carlson. Download full books in PDF and EPUB format.
Author: Ashlee M. Carlson Publisher: ISBN: Category : Languages : en Pages : 69
Book Description
This thesis has two research chapters regarding the government provided Rainfall Index Insurance for Pasture, Rangeland, and Forage (RI-PRF). In the first chapter, we empirically examined whether charity hazard exists between Rainfall Index Insurance (RI-PRF) and government mandated Livestock Forage Program by estimating the demand for RI-PRF. Evidence was found that lagged LFP payments significantly increase the marginal effects of participating in RI-PRF in three of the five states and in the combined model. These results support the opposite of charity hazard where LFP payments improve the probability of purchasing RI-PRF. In our other models, the results provide evidence in support and against charity hazard in RI-PRF participation. As a result, we cannot definitively accept or reject our hypothesis that charity hazard exists in RI-PRF participation. In the second chapter, we examined the relation between RI-PRF insurance interval selection and financial outcomes from forage production for two locations in the Sandhills of Nebraska. We find that the risk reducing effectiveness of the monthly insurance interval depends upon expected precipitation. Our results indicate that insurance scenarios containing monthly intervals with high expected precipitation (during the growing season) reduced producer risk. Whereas insurance scenarios containing monthly intervals with low expected precipitation (non-growing season) did not result in reducing producer risk. In addition, insurance intervals with low expected precipitation offered the highest net returns to insurance participation at one location, had higher premiums and therefore, higher government cost through additional subsidy dollars per acre.
Author: Ashlee M. Carlson Publisher: ISBN: Category : Languages : en Pages : 69
Book Description
This thesis has two research chapters regarding the government provided Rainfall Index Insurance for Pasture, Rangeland, and Forage (RI-PRF). In the first chapter, we empirically examined whether charity hazard exists between Rainfall Index Insurance (RI-PRF) and government mandated Livestock Forage Program by estimating the demand for RI-PRF. Evidence was found that lagged LFP payments significantly increase the marginal effects of participating in RI-PRF in three of the five states and in the combined model. These results support the opposite of charity hazard where LFP payments improve the probability of purchasing RI-PRF. In our other models, the results provide evidence in support and against charity hazard in RI-PRF participation. As a result, we cannot definitively accept or reject our hypothesis that charity hazard exists in RI-PRF participation. In the second chapter, we examined the relation between RI-PRF insurance interval selection and financial outcomes from forage production for two locations in the Sandhills of Nebraska. We find that the risk reducing effectiveness of the monthly insurance interval depends upon expected precipitation. Our results indicate that insurance scenarios containing monthly intervals with high expected precipitation (during the growing season) reduced producer risk. Whereas insurance scenarios containing monthly intervals with low expected precipitation (non-growing season) did not result in reducing producer risk. In addition, insurance intervals with low expected precipitation offered the highest net returns to insurance participation at one location, had higher premiums and therefore, higher government cost through additional subsidy dollars per acre.
Author: Ceballos, Francisco Publisher: Intl Food Policy Res Inst ISBN: Category : Political Science Languages : en Pages : 48
Book Description
This paper develops a novel methodology to estimate the degree of spatial basis risk for an arbitrary rainfall index insurance instrument. It relies on a widelyused stochastic rainfall generator, extendedto accommodate nontraditional dependence patterns—in particular spatial upper-tail dependence in rainfall—through a copula function. The methodology is applied to a recentlylaunched index product insuring against excess rainfall in Uruguay. The model is first calibrated using historical daily rainfall data from the national network of weather stations, complemented with a unique,high-resolution dataset from a dense network of 34 automatic weather stations around the study area. The degree of downside spatial basis risk is then estimated by Monte Carlo simulations and the results are linked to both a theoretical model of the demand for index insurance and to farmers’ perceptions about the product.
Author: Hiwot Teshome Publisher: LAP Lambert Academic Publishing ISBN: 9783659772573 Category : Languages : en Pages : 68
Book Description
It is known that agricultural producers around the world are exposed to a variety of income uncertainties, both market related such as price variations, as well as non-market related, unstable weather patterns. It is well known that these uncertainties induce significant income risks, particularly detrimental to small and/or poor producers in developing countries. Over the years, a range of risk management strategies have been used to reduce, or to assist smallholder farmers to absorb, some of agricultural risks. Since insurance is potentially an important instrument to transfer part of the risks, this study try to assess weather related risks faced on smallholder farmers and their demand for the rainfall risk insurance. This book is addressing smallholder farmers' in Ethiopia whose livelihood is depend on agriculture, and are suffering from climate related risks.
Author: Xavier Gin?? Publisher: ISBN: Category : Languages : en Pages :
Book Description
Rainfall index insurance provides a payout based on measured local rainfall during key phases of the agricultural season, and in principle can help rural households diversify a key source of idiosyncratic risk. This paper describes basic features of rainfall insurance contracts offered in India since 2003, and documents stylized facts about market demand and the distribution of payouts. The authors summarize the results of previous research on this market, which provides evidence that price, liquidity constraints, and trust all present significant barriers to increased take-up. They also discuss potential future prospects for rainfall insurance and other index insurance products.
Author: Publisher: World Bank Publications ISBN: Category : Agricultura - Marruecos Languages : en Pages : 44
Book Description
Almost 90 percent of Moroccan agriculture is not irrigated, and since most of Morocco's crops depend on adequate rainfall, yields and production vary widely. A drought insurance program based on rainfall index contracts is feasible in parts of Morocco and could significantly benefit its farmers.
Author: Ayako Matsuda Publisher: ISBN: Category : Languages : en Pages : 98
Book Description
Weather index insurance has been attracting much attention from academics and policy makers. When deciding whether and how much insurance to obtain, farmers face a trade-off: while an increasing acre coverage reduces the weather risk, it increases the basis risk. This dissertation investigates the demand for rainfall index insurance in India. Chapter 1 presents the subsidy experiment that was conducted in India and describes the key variables collected. It offers directions for quantitative research using the analyzed dataset. In Chapter 2, I particularly focus on the relationships among basis risk, weather risk, and the risk aversion of potential insurance buyers. Based on the subsidy experiment, I develop a structural model, and estimate the risk aversion parameters. The estimated risk aversion is found to be consistent with the observed inelasticity of demand for many farmers. I also show that a heterogeneity of socio-economic characteristics affects the level of the estimated risk aversion. I find that age, education, and literacy are negatively correlated with the estimated risk aversion. Finally, I derive an aggregate demand and conduct a counterfactual analysis to quantify the effect of basis risk. I find that basis risk is important enough that only farmers within approximately 4km to a weather station can actually reduce the overall risk by purchasing this insurance.
Author: Stephen Jewson Publisher: Cambridge University Press ISBN: 1139444514 Category : Business & Economics Languages : en Pages : 393
Book Description
Originally published in 2005, Weather Derivative Valuation covers all the meteorological, statistical, financial and mathematical issues that arise in the pricing and risk management of weather derivatives. There are chapters on meteorological data and data cleaning, the modelling and pricing of single weather derivatives, the modelling and valuation of portfolios, the use of weather and seasonal forecasts in the pricing of weather derivatives, arbitrage pricing for weather derivatives, risk management, and the modelling of temperature, wind and precipitation. Specific issues covered in detail include the analysis of uncertainty in weather derivative pricing, time-series modelling of daily temperatures, the creation and use of probabilistic meteorological forecasts and the derivation of the weather derivative version of the Black-Scholes equation of mathematical finance. Written by consultants who work within the weather derivative industry, this book is packed with practical information and theoretical insight into the world of weather derivative pricing.
Author: Xavier Giné Publisher: ISBN: Category : Languages : en Pages : 49
Book Description
Rainfall index insurance provides a payout based on measured local rainfall during key phases of the agricultural season, and in principle can help rural households diversify a key source of idiosyncratic risk. This paper describes basic features of rainfall insurance contracts offered in India since 2003, and documents stylized facts about market demand and the distribution of payouts. The authors summarize the results of previous research on this market, which provides evidence that price, liquidity constraints, and trust all present significant barriers to increased take-up. They also discuss potential future prospects for rainfall insurance and other index insurance products.
Author: Daniel Stein Publisher: ISBN: Category : Languages : en Pages : 23
Book Description
This paper analyzes the dynamic nature of rainfall insurance purchasing decisions. Customers of the Indan microfinance institution BASIX who receive an insurance payout are 9 to 22 percentage points more likely to purchase insurance the following year. This effect cannot be satisfactorily explained by trust, learning, or direct effects ofweather, leading to the conclusion that it is driven by behavioral effects. Overall, low repurchasing rates even after payouts suggest that the studied rainfall index insurance products are likely to continue struggling to achieve significant sales at market prices.
Author: Ashlee M. Carlson
Author: Ashlee M. Carlson
Author: Nancy A. McCarthy
Author: Ceballos, Francisco
Author: Hiwot Teshome
Author: Xavier Gin??
Author: 
Author: Ayako Matsuda
Author: Stephen Jewson
Author: Xavier Giné
Author: Daniel Stein