scholarly journals EFFECTS OF THE 2014 FARM BILL POLICIES ON COTTON PRODUCTION

2018 ◽  
Vol 50 (2) ◽  
pp. 169-187 ◽  
Author(s):  
STEPHEN DEVADOSS ◽  
JEFF LUCKSTEAD
Keyword(s):  
Insurance Coverage ◽  
Coverage Rate ◽  
Risk Averse ◽  
Cotton Production ◽  
Insurance Policy ◽  
Farm Bill ◽  
On Certainty ◽  
Certainty Equivalents ◽  
Input Use ◽  
The Impact

AbstractWe develop a model for a representative risk-averse cotton farmer to analyze the impact of crop insurance policies (Revenue Protection [RP], Yield Protection, Stacked Income Protection Plan [STAX], and Supplemental Coverage Option [SCO]). The model is calibrated and numerically optimized to quantify the effects of different insurance policy combinations on input use (moral hazard), insurance coverage levels, premiums, and certainty equivalent. When the farmer elects only RP, the optimal coverage rate is 80%. Under RP and STAX, the optimal RP coverage rate is 70% and the STAX coverage rate is 90%. RP and STAX is the optimal policy combination based on certainty equivalents. The RP and SCO combination has the lowest impact of input use.

Eliciting Risk Preferences and Elasticity of Substitution

2020 ◽  
Vol 17 (4) ◽  
pp. 314-329
Author(s):  
Johan Burgaard ◽  
Mogens Steffensen
Keyword(s):  
Risk Aversion ◽  
Discount Rate ◽  
Predictive Power ◽  
Recursive Utility ◽  
Risk Averse ◽  
Indirect Utility ◽  
Consistent Estimation ◽  
On Certainty ◽  
Certainty Equivalents ◽  
Elasticity Of Intertemporal Substitution

Risk aversion and elasticity of intertemporal substitution (EIS) are separated via the celebrated recursive utility building on certainty equivalents of indirect utility. Based on an alternative separation method, we formulate a questionnaire for simultaneous and consistent estimation of risk aversion, subjective discount rate, and EIS. From a representative group of 1,153 respondents, we estimate parameters for these preferences and their variability within the population. Risk aversion and the subjective discount rate are found to be in the orders of 2 and 0, respectively, not diverging far away from results from other studies. Our estimate of EIS in the order of 10 is larger than often reported. Background variables like age and income have little predictive power for the three estimates. Only gender has a significant influence on risk aversion in the usually perceived direction that females are more risk-averse than males. Using individual estimates of preference parameters, we find covariance between preferences toward risk and EIS. We present the background reasoning on objectives, the questionnaire, a statistical analysis of the results, and economic interpretations of these, including relations to the literature.

scholarly journals OPTIMAL FINANCIAL AND ORDERING DECISIONS OF A FIRM WITH INSURANCE CONTRACT

2014 ◽  
Vol 21 (2) ◽  
pp. 257-279 ◽  
Author(s):  
Wenli WANG ◽  
Jianwen LUO
Keyword(s):  
Insurance Coverage ◽  
Downside Risk ◽  
Risk Measurement ◽  
Insurance Contract ◽  
Selling Price ◽  
Insurance Policy ◽  
Coverage Level ◽  
Variance Risk ◽  
Loan Limit ◽  
The Impact

This paper examines the impact of a bank’s risk limit on the financial and ordering decisions of a capital-constrained firm with insurance contract. All our major results can be computed via explicit expressions. It is shown that the bank will control its risk to be below the risk limit through setting a loan limit and the firm can make the loan limit increase by buying a deductible insurance policy. It is also shown that the repayment demand level needed to avoid bankruptcy will not be affected by the insurance policy. We derive the firm’s optimal ordering quantity and insurance coverage level under a downside risk measurement and a variance risk measurement separately. It is shown that the firm should pay more attention to whether to buy insurance or not under the downside risk measurement and how much insurance coverage to buy under the variance risk measurement. Under the downside risk measurement, once the firm decides to buy insurance, the optimal coverage level is independent of the bank’s risk limit. We also show that the insurance contract has a more obvious effect on the profit increases when the selling price is high or the bank’s risk limit is low.

scholarly journals Economic Analysis of Supplemental Deductible Coverage as Recommended in the USDA's 2007 Farm Bill Proposal

2008 ◽  
Vol 37 (1) ◽  
pp. 117-131
Author(s):  
Paul D. Mitchell ◽  
Thomas O. Knight
Keyword(s):  
Economic Analysis ◽  
Systemic Risk ◽  
Crop Insurance ◽  
Insurance Coverage ◽  
Yield Potential ◽  
High Yield ◽  
Farm Bill ◽  
Certainty Equivalents ◽  
The Individual ◽  
High Yield Potential

A primary change to crop insurance contained in the USDA's Farm Bill proposal is supplemental deductible coverage (SDC). SDC would allow farmers who purchase individual crop insurance coverage to purchase area-wide coverage in the amount of the individual policy deductible. This supplemental area-wide coverage would be similar to the existing Group Risk Plan policy, but with an accelerated indemnity schedule. Analysis indicates that SDC increases farmer certainty equivalents. The largest benefits are realized by farmers with high yield potential in counties with greater systemic risk. In general, optimal individual policy coverage levels modestly decrease when SDC is taken.

Assessing the Impact of Suicide Exclusion Periods on Life Insurance

Crisis ◽  
2010 ◽  
Vol 31 (4) ◽  
pp. 217-223 ◽  
Author(s):  
Paul Yip ◽  
David Pitt ◽  
Yan Wang ◽  
Xueyuan Wu ◽  
Ray Watson ◽  
...  
Keyword(s):  
Life Insurance ◽  
Accidental Death ◽  
Insurance Policy ◽  
Death Rates ◽  
Insurance Policies ◽  
Suicidal Death ◽  
Insured Individual ◽  
The Impact ◽  
Insurance Data ◽  
The Relationship

Background: We study the impact of suicide-exclusion periods, common in life insurance policies in Australia, on suicide and accidental death rates for life-insured individuals. If a life-insured individual dies by suicide during the period of suicide exclusion, commonly 13 months, the sum insured is not paid. Aims: We examine whether a suicide-exclusion period affects the timing of suicides. We also analyze whether accidental deaths are more prevalent during the suicide-exclusion period as life-insured individuals disguise their death by suicide. We assess the relationship between the insured sum and suicidal death rates. Methods: Crude and age-standardized rates of suicide, accidental death, and overall death, split by duration since the insured first bought their insurance policy, were computed. Results: There were significantly fewer suicides and no significant spike in the number of accidental deaths in the exclusion period for Australian life insurance data. More suicides, however, were detected for the first 2 years after the exclusion period. Higher insured sums are associated with higher rates of suicide. Conclusions: Adverse selection in Australian life insurance is exacerbated by including a suicide-exclusion period. Extension of the suicide-exclusion period to 3 years may prevent some “insurance-induced” suicides – a rationale for this conclusion is given.

Risk Attitude and Corporate Investment under Output Market Uncertainty: Evidence from The Mekong River Delta, Vietnam

2016 ◽  
pp. 59-70
Author(s):  
Ninh Le Khuong ◽  
Nghiem Le Tan ◽  
Tho Huynh Huu
Keyword(s):  
Negative Relationship ◽  
Risk Attitude ◽  
Business Strategies ◽  
Risk Averse ◽  
Market Uncertainty ◽  
Firm Investment ◽  
Output Market ◽  
The Impact ◽  
The Relationship

This paper aims to detect the impact of firm managers’ risk attitude on the relationship between the degree of output market uncertainty and firm investment. The findings show that there is a negative relationship between these two aspects for risk-averse managers while there is a positive relationship for risk-loving ones, since they have different utility functions. Based on the findings, this paper proposes recommendations for firm managers to take into account when making investment decisions and long-term business strategies as well.

scholarly journals Impact of the Affordable Care Act’s Dependent Coverage Expansion on the Health Care and Health Status of Young Adults: What Do We Know So Far?

2017 ◽  
Vol 75 (2) ◽  
pp. 131-152 ◽  
Author(s):  
Joshua Breslau ◽  
Bradley D. Stein ◽  
Bing Han ◽  
Shoshanna Shelton ◽  
Hao Yu
Keyword(s):  
Public Health ◽  
Health Status ◽  
Insurance Coverage ◽  
Health Impact ◽  
Care Utilization ◽  
The Public ◽  
Behavioral Health Treatment ◽  
Coverage Expansion ◽  
Dependent Coverage ◽  
The Impact

The dependent coverage expansion (DCE), a component of the Affordable Care Act, required private health insurance policies that cover dependents to offer coverage for policyholders’ children through age 25. This review summarizes peer-reviewed research on the impact of the DCE on the chain of consequences through which it could affect public health. Specifically, we examine the impact of the DCE on insurance coverage, access to care, utilization of care, and health status. All studies find that the DCE increased insurance coverage, but evidence regarding downstream impacts is inconsistent. There is evidence that the DCE reduced high out-of-pocket expenditures and frequent emergency room visits and increased behavioral health treatment. Evidence regarding the impact of the DCE on health is sparse but suggestive of positive impacts on self-rated health and health behavior. Inferences regarding the public health impact of the DCE await studies with greater methodological diversity and longer follow-up periods.

Impact of Minor Irrigation on Agricultural Production: An Inter-Crop Analysis in Odisha

2021 ◽  
pp. 298-304
Keyword(s):  
Water Availability ◽  
Agricultural Production ◽  
The Other ◽  
Farm Households ◽  
Input Use ◽  
Irrigation Potential ◽  
Use Efficiency ◽  
The Impact ◽  
Upstream Control ◽  
Minor Irrigation

The study examined the impact of minor irrigation on agricultural production and evaluated the gap between IPC and IPU in the Keonjhar district of Odisha. For this rationale, data were collected from 210 farm households through the primary survey. In support of the analysis, the Cobb Douglas model and factor analysis were used. The results revealed that the input use efficiency had a positive and significant impact on paddy production the most in all the MIPs regions compared to the other crops. However, the study indicated that insufficient water availability was the major cause behind the gap between irrigation potential created and utilised. Thus, minor irrigation played a crucial role in enhancing agricultural production in hilly regions. With the enthusiastic participation of planners, effective working of Pani Panchayats, canals, and upstream control, NGOs' involvement can achieve selfsufficiency in agricultural production by encouraging minor irrigation projects in the hilly province.

scholarly journals The impact of welfare reform on the health insurance coverage, utilization and health of low education single mothers

2017 ◽  
Vol 180 ◽  
pp. 28-35 ◽  
Author(s):  
Kimberly Narain ◽  
Marianne Bitler ◽  
Ninez Ponce ◽  
Gerald Kominski ◽  
Susan Ettner
Keyword(s):  
Health Insurance ◽  
Welfare Reform ◽  
Single Mothers ◽  
Insurance Coverage ◽  
Health Insurance Coverage ◽  
Low Education ◽  
The Impact

scholarly journals Are entrepreneurs becoming more risk averse?

2019 ◽  
Vol 35 (1) ◽  
pp. 1-2 ◽  
Author(s):  
John J. Oliver ◽  
Newton Velji
Keyword(s):  
Risk Averse ◽  
Corporate Acquisitions ◽  
Content Type ◽  
Industry Consolidation ◽  
Degree Of Consolidation ◽  
The Uk ◽  
The Impact ◽  
Startup Firms ◽  
Production Industry ◽  
Tv Production

Purpose This paper aims to discuss the emerging theme of risk aversion in entrepreneurs following high levels of industry consolidation. Design/methodology/approach This paper is a viewpoint on the authors’ opinion and interpretation of industry consolidation. Findings The UK Independent TV Production Industry has experienced a remarkable degree of consolidation with corporate acquisitions and mergers changing the size, shape and revenue distribution among firms in the industry. In addition, entrepreneurs appear to be more risk averse in terms of entering the industry. Practical implications If the trend in entrepreneurs in the UK TV Production Industry being more risk averse continues, then the number of new startup firms will fall and that could put the future of the industry at jeopardy. Originality/value This paper presents an interesting observation on the impact of consolidation of the UK Independent TV Production Industry, in so far as, entrepreneurs appear to be becoming more risk averse.

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