On the Premium for Revenue Insurance under Joint Price and Yield Risk
نویسنده
چکیده
This note provides two results pertaining to the pricing of agricultural revenue insurance contracts under joint price and yield risk. First, a weakening of the concordance ordering is used to sign the effect of greater dependence between the multiplicative risks (price and yield) on the expected indemnity payment. Second, sufficient conditions are found when the premium rate for revenue insurance is smaller (greater) than the premium for the corresponding single risk (price or yield) insurance.
منابع مشابه
Developing Area Yield Crop Insurance under Alternative Parametric Methods: Case study for Wheat in East Azarbaijan Province, Iran
In crop insurance design, the yield guarantee and the premium are very important parameters, both of which depend upon the yield distribution. Accordingly, the accurate modeling of yield distribution is essential for designing crop insurance contracts. This study employs historical county-level yield data for irrigated and dry wheat in East Azarbaijan Province, Iran for 1975-2013 to evaluate th...
متن کاملImpacts of Premium Bounds on the Operation of Put Option and Day-ahead Electricity Markets
In this paper, the impacts of premium bounds of put option contracts on the operation of put option and day-ahead electricity markets are studied. To this end, first a comprehensive equilibrium model for a joint put option and day-ahead markets is presented. Interaction between put option and day-ahead markets, uncertainty in fuel price, impact of premium bounds, and elasticity of con...
متن کاملPricing Unemployment Insurance in Iran
Abstract Employees always concern about losing their job, or in other word, losing their income resources. For this purpose, governments require strong protection system for covering these concerns. The Unemployment Insurance (UI) program’s can be used for achieving this goal. Based on article five of Iranian unemployment Insurance law, premium is four percent of employee’s salary while emplo...
متن کاملWhich Will Overcome? The Productivity or Risk Premium
The study investigates consumers’ preference for cowpea reflected in the Nigerian markets through price discounts and premiums that consumers pay for different cowpea characteristics. The price data used for this study were obtained through a market survey. A common data collection protocol was employed. Every month, between October 2009 to December 2010, five cowpea samples per seller were bou...
متن کاملIdentifying and classifying the factors affecting risk in automobile hull insurance in Iran using fuzzy Delphi method and factor analysis
Automobile hull insurance has attracted much attention due to the high rate of vehicle applications in daily lives. Since purchasing these policies is optional in Iran and their premium rates are set competitively, a competition is formed among the insurance companies for attracting low risk drivers. However, most of the insurers still use comparative rates and pay no or less attention to the f...
متن کامل