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Portfolio Allocation and Alternative Structures of the Standard Reinsurance Agreement

Author

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  • Vedenov, Dmitry V.
  • Miranda, Mario J.
  • Dismukes, Robert
  • Glauber, Joseph W.

Abstract

This paper analyzes effects of hypothetical changes in the Standard Reinsurance Agreement (SRA) on rates of return of private insurance companies participating in delivery of crop insurance. A computer simulation program is used to model companies' returns under the current and alternative SRA structures. A simple heuristic rule is used in order to simulate companies' behavior under counterfactual assumptions about the SRA structures.

Suggested Citation

  • Vedenov, Dmitry V. & Miranda, Mario J. & Dismukes, Robert & Glauber, Joseph W., 2004. "Portfolio Allocation and Alternative Structures of the Standard Reinsurance Agreement," 2004 Annual meeting, August 1-4, Denver, CO 20222, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20222
    DOI: 10.22004/ag.econ.20222
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    File URL: https://ageconsearch.umn.edu/record/20222/files/sp04ve05.pdf
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    References listed on IDEAS

    as
    1. Alan P. Ker & Barry K. Goodwin, 2000. "Nonparametric Estimation of Crop Insurance Rates Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 463-478.
    2. Mario J. Miranda & Joseph W. Glauber, 1997. "Systemic Risk, Reinsurance, and the Failure of Crop Insurance Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 206-215.
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    Cited by:

    1. Coble, Keith H. & Barnett, Barry J., 2008. "Implications of Integrated Commodity Programs and Crop Insurance," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-12, August.
    2. Smith, Vincent H. & Glauber, Joseph & Dismukes, Robert, 2016. "Rent Dispersion in the US Agricultural Insurance Industry:," IFPRI discussion papers 1532, International Food Policy Research Institute (IFPRI).
    3. Bulut, Harun, 2016. "Economic Design for the Supply Side of Agricultural Insurance Markets," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236008, Agricultural and Applied Economics Association.

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    Keywords

    Risk and Uncertainty;

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