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A Comparison of Subjective and Historical Yield Distributions With Implications For Multiple Peril Crop Insurance

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Listed:
  • Buzby, Jean
  • Kenkel, Phil L.
  • Skees, Jerry R.
  • Pease, James W.
  • Benson, Fred J.

Abstract

This study examines the relationship between subjective yield distributions elicited from Kentucky farmers in 1987 and 1989 and their historical yield distributions using insurance concepts. The results indicate close correspondence between the first moments of the distributions and a marked difference in skewness suggesting that farmers underestimate their downside risk.

Suggested Citation

  • Buzby, Jean & Kenkel, Phil L. & Skees, Jerry R. & Pease, James W. & Benson, Fred J., 1990. "A Comparison of Subjective and Historical Yield Distributions With Implications For Multiple Peril Crop Insurance," 1990 Annual meeting, August 5-8, Vancouver, Canada 270874, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea90:270874
    DOI: 10.22004/ag.econ.270874
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    References listed on IDEAS

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    1. David A. Bessler, 1980. "Aggregated Personalistic Beliefs on Yields of Selected Crops Estimated Using ARIMA Processes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 666-674.
    2. Jerry R. Skees & Michael R. Reed, 1986. "Rate Making for Farm-Level Crop Insurance: Implications for Adverse Selection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 653-659.
    3. Prabhu L. Pingali & Gerald A. Carlson, 1985. "Human Capital, Adjustments in Subjective Probabilities, and the Demand for Pest Controls," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 853-861.
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    Cited by:

    1. Gonzales, Clemen & Luo, Haiping & Skees, Jerry R. & Marchant, Mary A., 1991. "Combining Longer Series Of Weather And Climate Data With Short Series Of Yield Data To Enhance Information About Yield Risk," Staff Papers 140275, University of Kentucky, Department of Agricultural Economics.
    2. Hartell, Jason G., 2004. "Pricing Benefit Externalities of Soil Carbon Sequestration in Multifunctional Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(2), pages 1-15, August.

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