Table 3. Optimal Hedge Ratio and Crop Insurance Coverage: Model Comparison
|
Alternative Model |
Hedge Ratio |
Crop Ins. Cov. Ratio | ||||
|
Specifications |
Year1 |
Year2 |
Year3 |
Year4 |
Year5 |
Year1-5 |
|
Whitman County | ||||||
|
GEU full (α= -0.13, β = 0.89, ρ = 0.9493) |
0.25 |
0.31 |
0.32 |
0.32 |
0.26 |
0.85 |
|
CES-EU (α = ρ = -1, β = 0.89) |
0.29 |
0.27 |
0.25 |
0.25 |
0.22 |
0.85 |
|
MR-EU (α = ρ = 1, β = 0.89) |
0 |
0 |
0 |
0 |
0 |
0.85 |
|
MA-EU (α = -1, U(C) = -1/C, β = 0.89) |
0.29 |
0.27 |
0.25 |
0.25 |
0.22 |
0.85 |
|
Grant County | ||||||
|
GEU full (α= -0.13, β = 0.89, ρ = 0.9493) |
0.25 |
0.31 |
0.32 |
0.32 |
0.24 |
0.85 |
|
CES-EU (α = ρ = -1, β = 0.89) |
0.31 |
0.28 |
0.26 |
0.25 |
0.21 |
0.85 |
|
MR-EU (α = ρ = 1, β = 0.89) |
0 |
0 |
0 |
0 |
0 |
0.85 |
|
MA-EU (α = -1, U(C) = -1/C, β = 0.89) |
0.31 |
0.28 |
0.26 |
0.25 |
0.21 |
0.85 |
47