IDEAS home Printed from https://ideas.repec.org/a/ags/iepeoa/158247.html
   My bibliography  Save this article

Reduction In Revenue Volatility In Maize Production Applying The Indirect-Index Insurance

Author

Listed:
  • Markovic, Todor
  • Ivanović, Sanjin
  • Todorović, Saša

Abstract

This paper is aimed at providing the basic theoretical postulates of indirect-index insurance and by its application at quantifying the effect of the reduction in risk using a stochastic simulation. The paper uses data on maize yield gathered from family farm in the central part of Srem, and weather data were acquired from the nearest referential meteorological station. For the purpose of achieving a stated aim, two situations were analysed: maize production value by using the indirect-index insurance and by using no indirect-index insurance. In the case of applying this type of insurance, a farmer can decrease the risk by 8,816 RSD/ha (r=1.0), 4,116 RSD/ha if the correlation coefficient is 0.8, that is 2,598 RSD/ha (r=0.6). Therefore, it is possible to conclude that there is a significant effect of the reduction in risk by applying indirect-index insurance.

Suggested Citation

  • Markovic, Todor & Ivanović, Sanjin & Todorović, Saša, 2013. "Reduction In Revenue Volatility In Maize Production Applying The Indirect-Index Insurance," Economics of Agriculture, Institute of Agricultural Economics, vol. 60(3), pages 1-10, October.
    • Handle: RePEc:ags:iepeoa:158247
    DOI: 10.22004/ag.econ.158247
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/158247/files/1%20-%20Markovic_%20Ivanovic_%20Todorovic.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.158247?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bielza, Maria & Stroblmair, Josef & Gallego, Javier & Conte, Costanza G. & Dittmann, Christoph, 2007. "Agricultural risk management in Europe," 101st Seminar, July 5-6, 2007, Berlin Germany 9252, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Željko Kokot & Todor Marković & Sanjin Ivanović & Maja Meseldžija, 2020. "Whole-Farm Revenue Protection as a Factor of Economic Stability in Crop Production," Sustainability, MDPI, vol. 12(16), pages 1-11, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yong Liu & Alan P. Ker, 2021. "Simultaneous borrowing of information across space and time for pricing insurance contracts: An application to rating crop insurance policies," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 88(1), pages 231-257, March.
    2. Assefa, Tsion Taye & Meuwissen, Miranda P.M. & Van Asseldonk, Marcel A.P.M., "undated". "Mutual insurance companies as a tool for farmer income stabilization: performance and prospects in the CAP," 126th Seminar, June 27-29, 2012, Capri, Italy 125991, European Association of Agricultural Economists.
    3. Chemeris, Anna & Liu, Yong & Ker, Alan P., 2022. "Insurance subsidies, climate change, and innovation: Implications for crop yield resiliency," Food Policy, Elsevier, vol. 108(C).
    4. Ayenew, Habtamu Yesigat & Sauer, Johannes & Abate-Kassa, Getachew, 2016. "Cost of Risk Exposure, Farm Disinvestment and Adaptation to Climate Uncertainties: The Case of Arable Farms in the EU," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235595, Agricultural and Applied Economics Association.
    5. Venelin Terziev & Ekaterina Arabska & Vesela Radovic, 2015. "Risk Management In Organic Farming," Proceedings of International Academic Conferences 1003048, International Institute of Social and Economic Sciences.
    6. Günther Schauberger & Martin Schönhart & Werner Zollitsch & Stefan J. Hörtenhuber & Leopold Kirner & Christian Mikovits & Johannes Baumgartner & Martin Piringer & Werner Knauder & Ivonne Anders & Konr, 2021. "Economic Risk Assessment by Weather-Related Heat Stress Indices for Confined Livestock Buildings: A Case Study for Fattening Pigs in Central Europe," Agriculture, MDPI, vol. 11(2), pages 1-22, February.
    7. Hengli Wang & Hong Liu & Danyang Wang, 2022. "Agricultural Insurance, Climate Change, and Food Security: Evidence from Chinese Farmers," Sustainability, MDPI, vol. 14(15), pages 1-17, August.
    8. Danuletiu Adina Elena & Danuletiu Dan Constantin & Barna Flavia, 2009. "Agricultural Insurance In Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 3(1), pages 169-175, May.
    9. Kloczko-Gajewska, Anna & Sulewski, Piotr, 2008. "Methods of Risk Protection Used by Polish Farmers," 108th Seminar, February 8-9, 2008, Warsaw, Poland 48109, European Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iepeoa:158247. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iepbgyu.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.