We develop a theoretical model of input use by agricultural producers who purchase crop insurance, and thus may engage in moral hazard. Through simulations, our findings show a combination of partial insurance coverage and partial monitoring of inputs may reduce substantially the problems...

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 mnimum standard for input use may reduce...

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...