Designing Crop Insurance to Manage Moral Hazard Costs

Robert Weaver and Taeho Kim

No 24784, 2002 International Congress, August 28-31, 2002, Zaragoza, Spain from European Association of Agricultural Economists

Abstract: A new crop insurance model based on just random risk (natural states) is presented instead of traditional model based on random risk, guaranteed price, and guaranteed yield. The simulation approach shows how the incentive compatibility constraints resolve the moral hazard problem by the insured under the insurer-agency crop insurance contracting.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Pages: 16
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae02:24784

DOI: 10.22004/ag.econ.24784

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