In this paper we price a precipitation option based on empirical weather data from Germany using different pricing methods, among them the burn analysis, index value simulation and daily simulation. For that purpose we develop a daily precipitation model. Moreover, a decorrelation analysis is...

An over-parameterized statistical yield-switching-fraud model is developed. Over-parameterized procedures are reviewed. Five percent of 206,952 producers (thirteen percent in one state) have suspicious yield patterns, elect higher coverage, and increase total multiple-unit indemnifications up to...

Using 11 years of experimental crop yields by cropping systems and fertilizer level, a MOTAD frontier was developed. This analysis allowed yield, cost, and stability interactions arising from crop sequences to be implicitly included. Target-MOTAD, Safety-First, and undominated stochastic...

Replaced with revised version of paper 06/17/08.

In this article we price a precipitation option based on empirical weather data from Germany using different pricing methods, among them Burn Analysis, Index Value Simulation and Daily Simulation. For that purpose we develop a daily precipitation model. Moreover, a de-correlation analysis is...

Different types of adverse selection-type of insurance product, type of unit, type of coverage and number of actual yields reported in Federal crop insurance is examined utilizing binomial and ordered logit discrete choice models for all U.S. cotton producers, 1997-2000. The associated costs of...

We model a futures exchange's clearinghouse as a "bank" holding a portfolio of credit lines available to its clearing members and collateralized with clearing margins or, equivalently, a portfolio of short European put basket options. Consequently, the "bank" model measures the clearinghouse's...

Considerable disagreement exists about the most appropriate characterization of farm-level yield distributions. Yet, the economic importance of alternate yield distribution specifications on insurance valuation, product designs and farm-level risk management has not been investigated or...

This article demonstrates the importance of temporal-spatial yield, acreage and price risk apart from price in addressing the importance of optional unit provision in Federal crop insurance program. Specifically, based on 1998 U.S. cotton producers data, the demand for optional versus basic unit...