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On The Premium For Revenue Insurance Under Joint Price And Yield Risk

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  • Saak, Alexander E.

Abstract

This note provides two results pertaining to the pricing of agricultural revenue insurance contracts under joint price and yield risk. First, a weakening of the concordance ordering is used to sign the effect of greater dependence between the multiplicative risks (price and yield) on the expected indemnity payment. Second, sufficient conditions are found when the premium rate for revenue insurance is smaller (greater) than the premium for the corresponding single risk (price or yield) insurance.

Suggested Citation

Handle: RePEc:ags:hebarc:18324
DOI: 10.22004/ag.econ.18324
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