Bulut, Harun; Collins, Keith J.; Zacharias, Thomas P. - In: American Journal of Agricultural Economics 94 (2012) 4, pp. 1013-1023
We theoretically a farmer's optimal use of area and individual crop insurance when area and individual losses are positively but imperfectly correlated. If premium rates for both plans are actuarially fair, the farmer will demand full individual insurance and no area insurance. If area insurance...