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

Joseph L. Krogmeier and H. Holly Wang

No 20902, 1998 Annual meeting, August 2-5, Salt Lake City, UT from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: 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.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Pages: 15
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea98:20902

DOI: 10.22004/ag.econ.20902

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