HEDGING CROP RISK WITH WEATHER INDEX AND INDIVIDUAL CROP INSURANCE

Jianqiang Hao, Murali Kanakasabai, Jerry R. Skees and Carl R. Dillon

No 34796, 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma from Southern Agricultural Economics Association

Abstract: This paper provides a theoretical analysis for the optimal portfolio of weather index and individual crop insurance in farm level under mean-variance framework and stresses the impacts of risk aversion level, transaction cost, and basis risk. An empirical application of corn farms in Todd county of Kentucky is applied to.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Pages: 20
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saeaft:34796

DOI: 10.22004/ag.econ.34796

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