This article focuses on the effect of differing heteroscedasticity assumptions on derived premium rates of area-yield crop insurance. Tests of the proportional and absolute heteroscedasticity assumptions are conducted using both in-sample and out-of-sample measures. Our results suggest that...

Purpose – The purpose of this research is to investigate the degree to which trends and structural change may have altered crop insurance expected loss cost ratios across time. Because loss experience is used to set rates for the program, these changes can impact the premiums paid by producers...