IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/302453.html
   My bibliography  Save this article

Rating Crop Insurance Contracts with Nonparametric Bayesian Model Averaging

Author

Listed:
  • Liu, Yong
  • Ker, Alan P.

Abstract

Crop insurance is plagued by relatively little historical information but significant spatial information. We investigate the efficacy of using nonparametric Bayesian model averaging (BMA) to incorporate extraneous information into the estimated premium rates. Nonparametric BMA is particularly suited to this application because it does not make any assumptions about parametric form or the extent to which yields are similar. We evaluate the proposed estimator under small-to-medium sample sizes and various geographical restrictions on the distance of spatial smoothing for policy relevance. The nonparametric BMA consistently decreases error and enables statistically significant and economically important rents to be captured.

Suggested Citation

  • Liu, Yong & Ker, Alan P., 2020. "Rating Crop Insurance Contracts with Nonparametric Bayesian Model Averaging," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 45(2), March.
    • Handle: RePEc:ags:jlaare:302453
    DOI: 10.22004/ag.econ.302453
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/302453/files/JARE%2C45.2%2CMay2020_5%2CLiu%2C244-264w_Supplement.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.302453?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
    ---><---

    Citations

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


    Cited by:

    1. Koliadenko, Svitlana & Andreichenko, Andrii & Galperina, Liubov & Minenko, Sofiia & Kovylina, Maria, 2020. "Analysis and forecasting of Ukrainian agrarian exports to the EU countries," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 6(3), September.
    2. 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.
    3. repec:ags:aaea22:335759 is not listed on IDEAS
    4. Addey, Kwame Asiam & Shaik, Saleem & Nganje, William, 2022. "DEVELOPMENT OF FARM MODEL FOR ND and NGP Prediction of Corn and Soybean Yields in the Presence of Random Shocks," Agribusiness & Applied Economics Report 320066, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Park, Eunchun & Harri, Ardian & Coble, Keith H., 2022. "Estimating Crop Yield Densities for Counties with Missing Data," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(3), September.
    6. Yikuan Chen & B. Wade Brorsen & Jon T. Biermacher & Mykel Taylor, 2022. "Spatially varying wheat protein premiums," Letters in Spatial and Resource Sciences, Springer, vol. 15(3), pages 587-598, December.

    More about this item

    Keywords

    Crop Production/Industries;

    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:ags:jlaare:302453. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.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.