THE POSSIBILITY OF A PRIVATE CROP INSURANCE MARKET: THE THEORETICAL FOUNDATIONS

The theoretical foundation for risk pooling in insurance has heavily depend on the independence assumption of losses, which is severely violated in crop insurance. A weaker condition, asymptotic nonpositive correlation can also lead to risk pooling and is satisfied by yield losses. Therefore, private insurance and reinsurance markets may work.


Issue Date:
1998
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20902
Total Pages:
15
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-22

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