Crop insurance valuation under alternative yield distributions

Research output: Contribution to journalArticlepeer-review


Considerable disagreement exists about the most appropriate characterization of farm-level yield distributions. Yet, the economic importance of alternative yield distribution specifications on crop insurance valuation has not been well documented. The results of this study demonstrate that large differences in expected payouts from popular crop insurance products can arise solely from the parameterization chosen to represent yield distributions. The results suggest that the frequently unexamined yield distribution specification may lead to economically significant errors in crop insurance policy rating and assessment of expected payouts from policies.

Original languageEnglish (US)
Pages (from-to)406-419
Number of pages14
JournalAmerican Journal of Agricultural Economics
Issue number2
StatePublished - May 2004


  • Crop insurance
  • Crop-yield distributions
  • Risk and uncertainty
  • Valuation

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics


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