The design of multiple crop insurance in Indonesia based on revenue risk using the copula model approach
© 2021 Informa UK Limited, trading as Taylor & Francis Group.
| Publié dans: | Journal of applied statistics. - 1991. - 48(2021), 13-15 vom: 14., Seite 2920-2930 |
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| Auteur principal: | |
| Autres auteurs: | , , , |
| Format: | Article en ligne |
| Langue: | English |
| Publié: |
2021
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| Accès à la collection: | Journal of applied statistics |
| Sujets: | Journal Article ARIMA copula dependence indemnity multicrop insurance revenue risk |
| Résumé: | © 2021 Informa UK Limited, trading as Taylor & Francis Group. It is important for Indonesia as a country with agricultural bases to develop crop insurance. Until now, Indonesia has not had any insurance for horticultural crops other than for corn. This paper discusses horticultural multicrop insurance products based on revenue risk that can be triggered by low prices, low yields, or a combination of both. In designing multicrop insurance products, it is important to model the variability of revenue risk through the implementation of copula toward crop yield and price and to estimate indemnity of the revenue-based multicrop insurance. The analysis employed Gumbel and Clayton copulas to model the dependency structure between crop yield and price of multicrops. Each marginal variable was modeled by using the ARIMA model. The results showed that multicrop revenue insurance tends to reduce the price of agricultural insurance in Indonesia, and thus this program has the potential to have good acceptance in agricultural insurance |
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| Description: | Date Revised 16.06.2022 published: Electronic-eCollection Citation Status PubMed-not-MEDLINE |
| ISSN: | 0266-4763 |
| DOI: | 10.1080/02664763.2021.1897089 |