Weather influences our daily lives and choices and has an enormous impact on cooperate revenues and earnings. Weather … derivatives differ from most derivatives in that the underlying weather cannot be traded and their market is relatively illiquid …. The weather derivative market is therefore incomplete. This paper implements a pricing methodology for weather derivatives …

Systemic weather risk is a major obstacle for the formation of private (non- subsidized) crop insurance. This paper … explores the possibility of spatial diversification of insurance by estimating the joint occurrence of unfavorable weather … dependencies between multivariate random variables. The estimation procedure is applied to weather data in Germany. Our results …