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2013-05-31Buch DOI: 10.18452/4470
Can expert knowledge compensate for data scarcity in crop insurance pricing?
dc.contributor.authorShen, Zhiwei
dc.contributor.authorOdening, Martin
dc.contributor.authorOkhrin, Ostap
dc.date.accessioned2017-06-16T00:52:23Z
dc.date.available2017-06-16T00:52:23Z
dc.date.created2013-08-01
dc.date.issued2013-05-31
dc.date.submitted2013-05-31
dc.identifier.issn1860-5664
dc.identifier.urihttp://edoc.hu-berlin.de/18452/5122
dc.description.abstractAlthough there is an increasing interest in index-based insurances in many developing countries, crop data scarcity hinders its implementation by forcing insurers to charge higher premiums. Expert knowledge has been considered a valuable information source to augment limited data in insurance pricing. This article investigates whether the use of expert knowledge can mitigate model risk which arises from insufficient statistical data. We adopt the Bayesian framework that allows for the combination of scarce data and expert knowledge, to estimate the risk parameter and buffer load. In addition, a benchmark for the evaluation of expert information is created by using a richer dataset generated from resampling. We find that expert knowledge reduces the parameter uncertainty and changes the insurance premium in the correct direction, but that the effect of the correction is sensitive to different strike levels of insurance indemnity.eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
dc.subjectBayesian estimationeng
dc.subjectexpert knowledgeeng
dc.subjectdata scarcityeng
dc.subjectcrop insurance pricingeng
dc.subject.ddc310 Sammlungen allgemeiner Statistiken
dc.subject.ddc330 Wirtschaft
dc.titleCan expert knowledge compensate for data scarcity in crop insurance pricing?
dc.typebook
dc.identifier.urnurn:nbn:de:kobv:11-100211348
dc.identifier.doihttp://dx.doi.org/10.18452/4470
local.edoc.container-titleSonderforschungsbereich 649: Ökonomisches Risiko
local.edoc.pages21
local.edoc.type-nameBuch
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
local.edoc.container-volume2013
local.edoc.container-issue30
local.edoc.container-year2013
local.edoc.container-erstkatid2195055-6

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