Article
Systemic risk in U.S. crop reinsurance programs
Agricultural Finance Review
Document Type
Article
Disciplines
Publication Version
Submitted Manuscript
Publication Date
4-1-2003
DOI
10.1108/00214980380001139
Abstract
This study develops a method to estimate the probability density function of the Federal Risk Management Agency’s (RMA’s) net income from reinsuring crop insurance for corn, wheat, and soybeans. When calibrated using 1997 data, results from the advocated method show that in 1997 there was a 5% probability RMA would have had to reimburse at least $1 billion to insurance companies, and the fair value of RMA’s insurance services to insurance firms in 1997 was $78.7 million.
Citation Information
Chuck Mason, Dermot J. Hayes and Sergio H Lence. "Systemic risk in U.S. crop reinsurance programs" Agricultural Finance Review Vol. 63 Iss. 1 (2003) p. 23 - 39 Available at: http://works.bepress.com/sergio_lence/48/
This is a working paper of an article from Agricultural Finance Review, 2003, 63(1); 23-39. DOI: 10.1108/00214980380001139