Advanced Search
MyIDEAS: Login to save this paper or follow this series

Ex Ante Evaluation Of Index-Based Crop Insurance Effectiveness


Author Info

  • Bokusheva, Raushan
  • Breustedt, Gunnar


The paper evaluates the effectiveness of several index-based crop insurance schemes by comparing results from two alternative evaluation approaches. We apply the common ex post approach from the literature by specifying and evaluating insurance contracts by means of the data for the same historical period. We introduce an ex ante evaluation approach by distinguishing between two consecutive periods in the available time series: the first period is used for determining insurance parameters and optimal number of farmer’s insurance contracts; and the subsequent one is considered for the evaluation of the risk reduction due to the insurance contract defined as in the first period. Our empirical results based on the data for 40 grain producers in Kazakhstan indicate that the common ex post approach overestimates the risk reduction substantially for most index insurance schemes. Additionally, the ex post approach seems to cause the overestimation of index-based insurance effectiveness primarily due to differences in the estimates of the optimal insurance contracts’ number rather than due to differences in the insurance contract parameters’ estimates.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 43957.

as in new window
Date of creation: 2008
Date of revision:
Handle: RePEc:ags:eaae08:43957

Contact details of provider:
Web page:
More information through EDIRC

Related research

Keywords: ex ante analysis; index-based crop insurance; weather-based index insurance; Kazakhstan; Risk and Uncertainty;

This paper has been announced in the following NEP Reports:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Bokusheva, Raushan, 2010. "Measuring the dependence structure between yield and weather variables," MPRA Paper 22786, University Library of Munich, Germany.
  2. Raushan Bokusheva, 2011. "Measuring dependence in joint distributions of yield and weather variables," Agricultural Finance Review, Emerald Group Publishing, vol. 71(1), pages 120-141, May.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:ags:eaae08:43957. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.