| Title: | Private Crop Insurers and the Reinsurance Fund Allocation Decision. |
| Authors: | Coble, Keith H.
Dismukes, Robert
Glauber, Joseph W.
USDA, ERS |
| Source: | American journal of agricultural economics. 2007 Aug., v. 89, no. 3 Blackwell Publishing Inc, p. 582-595. |
| NALT Subjects: | private sector
crop losses
crop insurance
agricultural policy
agricultural economics
USDA
econometric models
risk management
logit analysis
United States |
| Other Subjects: | Standard Reinsurance Agreement |
| Issue Date: | Aug-2007 |
| Abstract: | This research investigates the strategic behavior of private crop insurance firms reinsured by the USDA through the Standard Reinsurance Agreement. This arrangement allows the private firm to strategically allocate individual policies into different risk-sharing arrangements. Thus, firm earnings are conditioned upon accurately forecasting policy loss experience. Our analysis begins with models investigating the characteristics explaining the placement of policies into the assigned risk fund. Then a simulation model of the SRA is used to compare the post-SRA returns of actual firm allocations to two alternative allocation strategies based on a aggregate models and a policy-level econometric forecasting model. |
| URI: | http://hdl.handle.net/10113/8757 |
| Appears in Collections: | USDA Research and Information
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