{"id":{"repo_id":"uiuc","oai_identifier":"oai:www.ideals.illinois.edu:2142/83005"},"canonical_url":"https://search.dev.ndltd.org/etd/uiuc/oai:www.ideals.illinois.edu:2142/83005","repository":{"repo_id":"uiuc","name":"University of Illinois - Urbana-Champaign","base_url":"https://www.ideals.illinois.edu/oai-pmh"},"display":{"title":"Three Essays on Systemic Risk and Rating in Crop Insurance Markets","abstract":"The third essay examines the actuarial implications of the Loss Cost Ratio (LCR) ratemaking methodology employed by the Federal Government for setting base rates for the program, and identifies specific conditions required for the LCR methodology to result in unbiased rates. Specifically, constant relative risk through time and other restrictive requirements are required. These requirements are tested against a unique farm-level data set. The results indicate that the conditions required for the LCR to produce unbiased rates are violated for a large number of actual farmers. Implications include that the current ratemaking produces biased rates that are 75%-180% in excess of actuarially fair premiums in Illinois. A simple correction function is proposed and illustrated.","abstract_html":"The third essay examines the actuarial implications of the Loss Cost Ratio (LCR) ratemaking methodology employed by the Federal Government for setting base rates for the program, and identifies specific conditions required for the LCR methodology to result in unbiased rates. Specifically, constant relative risk through time and other restrictive requirements are required. These requirements are tested against a unique farm-level data set. The results indicate that the conditions required for the LCR to produce unbiased rates are violated for a large number of actual farmers. Implications include that the current ratemaking produces biased rates that are 75%-180% in excess of actuarially fair premiums in Illinois. A simple correction function is proposed and illustrated.","abstract_has_math":false,"creators":["Woodard, Joshua D."],"institution":"University of Illinois at Urbana-Champaign","degree_name":"Ph.D.","degree_level":"Dissertation","degree_discipline":"Agricultural and Consumer Economics","degree_department":null,"school":null,"contributors":["Sherrick, Bruce J."],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2015,"date_issued":"2015-09-25T20:55:46Z","date_published":"2015-09-25T20:55:46Z","updated_at":"2026-07-22T22:26:20Z","subjects":["Economics, Finance"],"languages":["eng"],"rights":[],"rights_urls":[],"identifier_entries":[{"key":"dc:identifier","label":"Identifier","values":["(MiAaPQ)AAI3337964"],"render_values":[{"text":"(MiAaPQ)AAI3337964","href":null,"code":true}]}]},"links":{"outbound_url":"http://hdl.handle.net/2142/83005","outbound_label":"Handle","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor","label":"Contributor","values":["Sherrick, Bruce J."]},{"key":"dc:creator","label":"Author","values":["Woodard, Joshua D."]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2015-09-25T20:55:46Z","10000-01-01","2008"]},{"key":"dc:type","label":"Dc Type","values":["text"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["Agricultural and Consumer Economics"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Dissertation"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Ph.D."]},{"key":"thesis:institution_name","label":"Thesis Institution Name","values":["University of Illinois at Urbana-Champaign"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Economics, Finance"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language","label":"Dc Language","values":["eng"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["http://hdl.handle.net/2142/83005","(MiAaPQ)AAI3337964"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["The third essay examines the actuarial implications of the Loss Cost Ratio (LCR) ratemaking methodology employed by the Federal Government for setting base rates for the program, and identifies specific conditions required for the LCR methodology to result in unbiased rates. Specifically, constant relative risk through time and other restrictive requirements are required. These requirements are tested against a unique farm-level data set. The results indicate that the conditions required for the LCR to produce unbiased rates are violated for a large number of actual farmers. Implications include that the current ratemaking produces biased rates that are 75%-180% in excess of actuarially fair premiums in Illinois. A simple correction function is proposed and illustrated.","Made available in DSpace on 2015-09-25T20:55:46Z (GMT). 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Specifically, constant relative risk through time and other restrictive requirements are required. These requirements are tested against a unique farm-level data set. The results indicate that the conditions required for the LCR to produce unbiased rates are violated for a large number of actual farmers. Implications include that the current ratemaking produces biased rates that are 75%-180% in excess of actuarially fair premiums in Illinois. A simple correction function is proposed and illustrated.","Made available in DSpace on 2015-09-25T20:55:46Z (GMT). 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