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Article
Diversifying Systemic Risk in Agriculture: A Copula-based Approach
Economics Presentations, Posters and Proceedings
  • Xiaoguang Feng, Iowa State University
  • Dermot J. Hayes, Iowa State University
Document Type
Poster
Conference
2014 AAEA Annual Meeting
Publication Date
7-1-2014
Conference Date
July 27–29, 2014
Geolocation
(44.977753, -93.26501080000003)
Abstract
One of the biggest obstacles for the development of private crop insurance markets is the systemic risk inherent in crop yields. Driven by spatially correlated weather events, crop losses are highly correlated within a certain area. As a result, the portfolio insurance risk has been raised prohibitively high for viable private crop insurance markets unless subsidized by the government. For example, the portfolio risk faced by U.S. crop insurers is about ten times larger than that of conventional insurance lines (Miranda and Glauber, 1997).
Language
en
Date Available
2015-03-21
File Format
application/pdf
Citation Information
Xiaoguang Feng and Dermot J. Hayes. "Diversifying Systemic Risk in Agriculture: A Copula-based Approach" Minneapolis, MN(2014)
Available at: http://works.bepress.com/dermot_hayes/21/