Magazine article from our research archive:
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On the revelation of private information in the U.S. crop insurance program.
- Article from:
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Journal of Risk and Insurance
- Article date:
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December 1, 2007
- Author:
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;
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Copyright informationCOPYRIGHT 2007 American Risk and Insurance Association, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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ABSTRACT
The crop insurance program is a prominent facet of U.S. farm policy. The participation of private insurance companies as intermediaries is justified on the basis of efficiency gains. These gains may arise from either decreased transaction costs through better established delivery channels and/or the revelation of private information. We find empirical evidence suggesting that private information is revealed by insurance companies via their reinsurance decisions. However, it is unlikely that such information will be incorporated into subsequent premium rates by the government.
INTRODUCTION
Federally regulated crop insurance programs have been a prominent ...
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