Asymmetric information in the form of moral hazard and adverse selection can result in sizable program costs for government-provided crop insurance plans. We present a methodology and illustrative simulations to show how these two types of information problems interact in a way to create program...

Asymmetric information in the form of moral hazard and adverse selection can result in sizeable efficiency losses and program costs for government provided crop insurance plans. We present a methodology and illustrative simulations to show how these two types of information problems interact in...

In this paper we develop a theoretical model of input supply by agricultural producers who purchase crop insurance and so who may engage in moral hazard. We show, through simulations, that a combination of partial insurance coverage combined with a minimum standard for input use may reduce...

The main motivation for this paper is the recognition of the fact that asymmetric information is the form of moral hazard and adverse selection results in sizeable efficiency losses. These costs are passed back to producers in the form of excessively high premium rates and also passed back to...

Equity and efficiency considerations in area versus individual crop insurance are investigated for 609 Ontario cash crop farms. Results show that the relationship between individual and area premiums and risk reduction are explained by systematic and non-systematic yield risk relationships. On...

This research examined the appropriateness of a 2-parameter model for crop insurance premium ratemaking. Besides conventional way of calculating crop insurance premium using normal curve theory, this study uses empirical crop yield's distribution to measure downside risk in approximating crop...

Females are more likely to attend Canadian universities and their participation rate has been increasing faster than that of males, generating a 15 percentage point gap by 2005. We investigate the determinants of attending university and explore the reasons for the increasing gender gap. As in...