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Rating Exotic Price Coverage in Crop Revenue Insurance

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  • Ramsey, Ford
  • Goodwin, Barry

Abstract

This paper considers exotic price coverage in crop insurance. The issue is similar to the pricing of options on extrema which are commonly called exotic options. Consideration is made of individual monthly average prices leading to a multivariate distribution with important dependencies. Additionally, the problem is approached in terms of the joint distribution of a maximum over an interval and the harvest time price.

Suggested Citation

  • Ramsey, Ford & Goodwin, Barry, 2015. "Rating Exotic Price Coverage in Crop Revenue Insurance," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205208, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205208
    DOI: 10.22004/ag.econ.205208
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    1. Barry K. Goodwin & Ashley Hungerford, 2015. "Copula-Based Models of Systemic Risk in U.S. Agriculture: Implications for Crop Insurance and Reinsurance Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(3), pages 879-896.
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    Cited by:

    1. Seyyed Ali Zeytoon Nejad Moosavian & Barry K. Goodwin, 2021. "Flexible modelling of multivariate risks in pricing margin protection insurance: modelling portfolio risks with mixtures of mixtures," Applied Economics, Taylor & Francis Journals, vol. 53(4), pages 411-440, January.
    2. Won Seok Lee, 2020. "A Study on the Value of Preserving a Parasitic Volcanic Sieve as a Tourism Good for Sustainable Management: Using the Contingent Valuation Method," Sustainability, MDPI, vol. 12(7), pages 1-12, April.

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    Keywords

    Agricultural Finance; Research Methods/ Statistical Methods; Risk and Uncertainty;
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