You are here

Designing Rainfall Insurance Contracts for Pasture, Rangeland, and Forage

Primary tabs

In the paper, preliminary results of the analysis of potential use of climate forecast information in designing rainfall index insurance in the southeastern region of the U.S. are reported. Joint distributions of bi-monthly rainfall and El Nino Southern Oscillation (ENSO) indexes are estimated using copula analysis of historical data. The risk reducing effectiveness of introducing premiums conditional on ENSO forecast is evaluated. The results indicate some dependence of the downward volatility of rainfall on the lagged ENSO (forecast) index, particularly in the coastal areas and in the late winter and spring.

Publication year: 
2010
Language: 
English
License Condition: Full Copyright - All rights reserved  
Groups audience: