IDEAS home Printed from https://ideas.repec.org/a/cup/jagaec/v40y2008i01p239-252_02.html

Modeling Texas Dryland Cotton Yields, With Application to Crop Insurance Actuarial Rating

Author

Listed:
  • Chen, Shu-Ling
  • Miranda, Mario J.

Abstract

Texas dryland upland cotton yields have historically exhibited greater variation and more distributional irregularities than the yields of other crops, raising concerns that conventional parametric distribution models may generate biased or otherwise inaccurate crop insurance premium rate estimates. Here, we formulate and estimate regime-switching models for Texas dryland cotton yields in which the distribution of yield is conditioned on local drought conditions. Our results indicate that drought-conditioned regime-switching models provide a better fit to Texas county-level dryland cotton yields than conventional parametric distribution models. They do not, however, generate significantly different Group Risk Plan crop insurance premium rate estimates.

Suggested Citation

  • Chen, Shu-Ling & Miranda, Mario J., 2008. "Modeling Texas Dryland Cotton Yields, With Application to Crop Insurance Actuarial Rating," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 239-252, April.
    • Handle: RePEc:cup:jagaec:v:40:y:2008:i:01:p:239-252_02
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S107407080002808X/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

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


    Cited by:

    1. Hennessy, David A., 2009. "Crop Yield Skewness and the Normal Distribution," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(01), pages 1-19, April.
    2. Moharram Ainollahi Ahmadabadi & Mohammad Ghahremanzadeh & Ghader Dashti & Seyed-Ali Hosseini-Yekani, 2025. "Evaluating Producer Welfare Benefits of Whole-Farm Revenue Insurance," Agriculture, MDPI, vol. 15(2), pages 1-20, January.
    3. Azadeh Falsafian & Mohammad Ghahremanzadeh & Taravat Aref Eshghi & Vali Rasooli Sharabiani & Mariusz Szymanek & Agata Dziwulska-Hunek, 2024. "Producer Welfare Benefits of Rating Area Yield Crop Insurance," Agriculture, MDPI, vol. 14(9), pages 1-21, September.
    4. Christopher N. Boyer & B. Wade Brorsen & Emmanuel Tumusiime, 2015. "Modeling skewness with the linear stochastic plateau model to determine optimal nitrogen rates," Agricultural Economics, International Association of Agricultural Economists, vol. 46(1), pages 1-10, January.
    5. Rejesus, Roderick M. & Marra, Michele C. & Roberts, Roland K. & English, Burton C. & Larson, James A. & Paxton, Kenneth W., 2013. "Changes in Producers' Perceptions of Within-Field Yield Variability after Adoption of Cotton Yield Monitors," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(2), pages 295-312, May.

    More about this item

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    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:cup:jagaec:v:40:y:2008:i:01:p:239-252_02. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/aae .

    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.