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Modeling the Tail Distribution and Ratemaking: An Application of Extreme Value Theory

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  • Hao, Jianqiang
  • Bathke, Arne
  • Skees, Jerry R.

Abstract

Economic analysis of weather risk often depends on accurate assessment of the probability (P) of tail quantiles (Q). Extreme value theory can provide a promising estimation of the tail part risk and this paper intends to apply the extreme value model to estimate the tail risk on India excess rainfall.

Suggested Citation

  • Hao, Jianqiang & Bathke, Arne & Skees, Jerry R., 2005. "Modeling the Tail Distribution and Ratemaking: An Application of Extreme Value Theory," 2005 Annual meeting, July 24-27, Providence, RI 19190, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19190
    DOI: 10.22004/ag.econ.19190
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    References listed on IDEAS

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