Adverse Selection in the Market for Crop Insurance
نویسندگان
چکیده
This paper examines the potential for adverse selection when farmers are offered a portfolio of insurance policies. We analyze the risk characteristics farmers who bought alternative insurance instruments in 1996-97. Inability to differentiate farmers according to risk types results in poor actuarial performance of insurance product. —————————————— Authors gratefully acknowledge helpful comments received from Joy Harwood and Randall Schnepf. The views expressed herein are those of the authors and not necessarily those of the Economic Research Service or U.S. Department of Agriculture.
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