Empirically Evaluating the Flexibility of the Johnson Family of Distributions: A Crop Insurance Application
| dc.creator | Lu, Yue | |
| dc.creator | Ramirez, Octavio A. | |
| dc.creator | Rejesus, Roderick M. | |
| dc.creator | Knight, Thomas O. | |
| dc.creator | Sherrick, Bruce J. | |
| dc.date | 2017-04-01T13:54:25Z | |
| dc.date.accessioned | 2026-07-09T04:36:48Z | |
| dc.description | This article examines the flexibility of the Johnson system of distributions by assessing its per-formance in terms of modeling crop yields for the purpose of setting actuarially fair crop in-surance premiums. Using data from corn farms in Illinois coupled with Monte Carlo simula-tion procedures, we found that average crop insurance premiums computed on the basis of the Johnson system provide reasonably accurate estimates even when the data are normal or come from a non-normal distribution other than the Johnson system (i.e., a beta). These results sug-gest that there is potential for using the Johnson system to rate previously uninsured crops that do not have historical insurance performance data upon which to base premium calculations. | |
| dc.identifier | doi:10.22004/ag.econ.44740 | |
| dc.identifier | https://ageconsearch.umn.edu/record/44740/files/lu%20et%20al.%20-%20current.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/44740 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/552458 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/44740 | |
| dc.title | Empirically Evaluating the Flexibility of the Johnson Family of Distributions: A Crop Insurance Application | |
| dc.type | Text |