among components of the portfolio. Computing value-at-risk (VaR) is important because the Standard Reinsurance Agreement … (SRA) allows for a portion of the risk to be transferred to the federal government. Further, the international reinsurance … industry is extensively involved in risk sharing arrangements with U.S. crop insurers. VaR is an important measure of the risk …

. Failure to allow for this possible input–output risk structure is indeed one of the limitations of the conventional form of … the CES production function. This limitation may result in false inferences about input-driven output risk. In light of … from very restrictive structural assumptions regarding risk considerations, and that such restrictions may lead to biased …