Reduction in revenue volatility in maize production applying the indirect-index insurance
Smanjenje volatilnosti prihoda u proizvodnji kukuruza primenom indirektnog indeksnog osiguranja
Abstract
This paper is aimed at providing the basic theoretical postulates of indirect-index insurance and by its application at quantifying the effect of the reduction in risk using a stochastic simulation. The paper uses data on maize yield gathered from family farm in the central part of Srem, and weather data were acquired from the nearest referential meteorological station. For the purpose of achieving a stated aim, two situations were analysed: maize production value by using the indirect-index insurance and by using no indirect-index insurance. In the case of applying this type of insurance, a farmer can decrease the risk by 8,816 RSD/ha (r=1.0), 4,116 RSD/ha if the correlation coefficient is 0.8, that is 2,598 RSD/ha (r=0.6). Therefore, it is possible to conclude that there is a significant effect of the reduction in risk by applying indirect-index insurance.
Cilj rada je da pruži osnovne teorijske postavke indirektnog indeksnog osiguranja i da se njegovom primenom kvantifikuje efekat smanjenja rizika koristeći stohastičku simulaciju. U radu su korišćeni podaci o prinosu kukuruza sa porodičnog poljoprivrednog gazdinstva u centralnom delu Srema, a sa najbliže referentne meteorološke stanice uzeti su vremenski podaci. Da bi se ostvario zadati cilj analizirane su dve situacije: vrednost proizvodnje kukuruza sa upotrebom indirektnog indeksnog osiguranja i bez njega. U slučaju primene ovog tipa osiguranja poljoprivrednik može smanjiti rizik za 8.816 RSD/ha (r=1,0), 4.116 RSD/ha ako je koeficijent korelacije 0,8 odnosno 2.598 RSD/ha (r=0,6). Stoga se može zaključiti da postoji značajan efekat smanjenja rizika primenom indirektnog indeksnog osiguranja.
Keywords:
indirect index insurance / maize / revenue / volatility / family farms / indirektno indeksno osiguranje / kukuruz / prihod / volatilnost / porodična gazdinstvaSource:
Ekonomika poljoprivrede, 2013, 60, 3, 445-454Publisher:
- Naučno društvo agrarnih ekonomista Balkana, Beograd, Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt
Funding / projects:
- Sustainable agriculture and rural development in the function of accomplishing strategic objectives of the Republic of Serbia in the Danube region (RS-MESTD-Integrated and Interdisciplinary Research (IIR or III)-46006)
- Rural Labour Market and Rural Economy of Serbia - Income Diversification as a Tool to Overcome Rural Poverty (RS-MESTD-Basic Research (BR or ON)-179028)
Collections
Institution/Community
Poljoprivredni fakultetTY - JOUR AU - Marković, Todor AU - Ivanović, Sanjin AU - Todorović, Saša PY - 2013 UR - http://aspace.agrif.bg.ac.rs/handle/123456789/3237 AB - This paper is aimed at providing the basic theoretical postulates of indirect-index insurance and by its application at quantifying the effect of the reduction in risk using a stochastic simulation. The paper uses data on maize yield gathered from family farm in the central part of Srem, and weather data were acquired from the nearest referential meteorological station. For the purpose of achieving a stated aim, two situations were analysed: maize production value by using the indirect-index insurance and by using no indirect-index insurance. In the case of applying this type of insurance, a farmer can decrease the risk by 8,816 RSD/ha (r=1.0), 4,116 RSD/ha if the correlation coefficient is 0.8, that is 2,598 RSD/ha (r=0.6). Therefore, it is possible to conclude that there is a significant effect of the reduction in risk by applying indirect-index insurance. AB - Cilj rada je da pruži osnovne teorijske postavke indirektnog indeksnog osiguranja i da se njegovom primenom kvantifikuje efekat smanjenja rizika koristeći stohastičku simulaciju. U radu su korišćeni podaci o prinosu kukuruza sa porodičnog poljoprivrednog gazdinstva u centralnom delu Srema, a sa najbliže referentne meteorološke stanice uzeti su vremenski podaci. Da bi se ostvario zadati cilj analizirane su dve situacije: vrednost proizvodnje kukuruza sa upotrebom indirektnog indeksnog osiguranja i bez njega. U slučaju primene ovog tipa osiguranja poljoprivrednik može smanjiti rizik za 8.816 RSD/ha (r=1,0), 4.116 RSD/ha ako je koeficijent korelacije 0,8 odnosno 2.598 RSD/ha (r=0,6). Stoga se može zaključiti da postoji značajan efekat smanjenja rizika primenom indirektnog indeksnog osiguranja. PB - Naučno društvo agrarnih ekonomista Balkana, Beograd, Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt T2 - Ekonomika poljoprivrede T1 - Reduction in revenue volatility in maize production applying the indirect-index insurance T1 - Smanjenje volatilnosti prihoda u proizvodnji kukuruza primenom indirektnog indeksnog osiguranja EP - 454 IS - 3 SP - 445 VL - 60 UR - https://hdl.handle.net/21.15107/rcub_agrospace_3237 ER -
@article{ author = "Marković, Todor and Ivanović, Sanjin and Todorović, Saša", year = "2013", abstract = "This paper is aimed at providing the basic theoretical postulates of indirect-index insurance and by its application at quantifying the effect of the reduction in risk using a stochastic simulation. The paper uses data on maize yield gathered from family farm in the central part of Srem, and weather data were acquired from the nearest referential meteorological station. For the purpose of achieving a stated aim, two situations were analysed: maize production value by using the indirect-index insurance and by using no indirect-index insurance. In the case of applying this type of insurance, a farmer can decrease the risk by 8,816 RSD/ha (r=1.0), 4,116 RSD/ha if the correlation coefficient is 0.8, that is 2,598 RSD/ha (r=0.6). Therefore, it is possible to conclude that there is a significant effect of the reduction in risk by applying indirect-index insurance., Cilj rada je da pruži osnovne teorijske postavke indirektnog indeksnog osiguranja i da se njegovom primenom kvantifikuje efekat smanjenja rizika koristeći stohastičku simulaciju. U radu su korišćeni podaci o prinosu kukuruza sa porodičnog poljoprivrednog gazdinstva u centralnom delu Srema, a sa najbliže referentne meteorološke stanice uzeti su vremenski podaci. Da bi se ostvario zadati cilj analizirane su dve situacije: vrednost proizvodnje kukuruza sa upotrebom indirektnog indeksnog osiguranja i bez njega. U slučaju primene ovog tipa osiguranja poljoprivrednik može smanjiti rizik za 8.816 RSD/ha (r=1,0), 4.116 RSD/ha ako je koeficijent korelacije 0,8 odnosno 2.598 RSD/ha (r=0,6). Stoga se može zaključiti da postoji značajan efekat smanjenja rizika primenom indirektnog indeksnog osiguranja.", publisher = "Naučno društvo agrarnih ekonomista Balkana, Beograd, Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt", journal = "Ekonomika poljoprivrede", title = "Reduction in revenue volatility in maize production applying the indirect-index insurance, Smanjenje volatilnosti prihoda u proizvodnji kukuruza primenom indirektnog indeksnog osiguranja", pages = "454-445", number = "3", volume = "60", url = "https://hdl.handle.net/21.15107/rcub_agrospace_3237" }
Marković, T., Ivanović, S.,& Todorović, S.. (2013). Reduction in revenue volatility in maize production applying the indirect-index insurance. in Ekonomika poljoprivrede Naučno društvo agrarnih ekonomista Balkana, Beograd, Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt., 60(3), 445-454. https://hdl.handle.net/21.15107/rcub_agrospace_3237
Marković T, Ivanović S, Todorović S. Reduction in revenue volatility in maize production applying the indirect-index insurance. in Ekonomika poljoprivrede. 2013;60(3):445-454. https://hdl.handle.net/21.15107/rcub_agrospace_3237 .
Marković, Todor, Ivanović, Sanjin, Todorović, Saša, "Reduction in revenue volatility in maize production applying the indirect-index insurance" in Ekonomika poljoprivrede, 60, no. 3 (2013):445-454, https://hdl.handle.net/21.15107/rcub_agrospace_3237 .