Optimum Area Yield Crop Insurance
研究当赔付基于周边区域总产量时，如何设计最优农作物保险合同。最优合同取决于衡量农场产量对区域产量敏感性的个体贝塔系数，并包含“消失的免赔额”等特征。
Abstract This article considers the problem of the optimal design of crop insurance when the indemnity is based upon the aggregate yield of a surrounding area. The optimal area yield crop insurance contract depends on the individual beta coefficient which measures the sensitivity of farm yield to area yield. Indemnity payments are made whenever the realized area yield is lower (higher) than a critical yield if the beta coefficient is positive (negative). The optimal contract contains a “disappearing deductible” if the beta coefficient is higher than unity.