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1 – 10 of over 1000
Article
Publication date: 31 July 2020

Atina Ahdika, Dedi Rosadi, Adhitya Ronnie Effendie and Gunardi

Farmer exchange rate (FER) is the ratio between a farmer's income and expenditure and is also an indicator of farmers’ welfare. There is little research regarding its use in risk…

Abstract

Purpose

Farmer exchange rate (FER) is the ratio between a farmer's income and expenditure and is also an indicator of farmers’ welfare. There is little research regarding its use in risk modeling in crop insurance. This study seeks to propose a design for a household margin insurance scheme of the agricultural sector based on FER.

Design/methodology/approach

This research employs various risk modeling concepts, i.e. value at risk, loss models and premium calculation, to construct the proposed model. The standard linear, static and time-varying copula models are used to identify the dependency between variables involved in calculating FER.

Findings

First, FER can be considered as the primary variable for risk modeling in agricultural household margin insurance because it demonstrates farmers’ financial ability. Second, temporal dependence estimated using the time-varying copula can minimize errors, reduce the premium rate and result in a tighter guarantee's level of security.

Originality/value

This research extends the previous similar studies related to the use of index ratio in margin insurance loss modeling. Its authenticity is in the use of FER, which represents the farmers' trading capability. FER determines farmers’ losses by considering two aspects: the farmers’ income rate and their ability to fulfill their life and farming needs. Also, originality exists in the use of the time-varying copulas in identifying the dependence of the indices involved in calculating FER.

Details

Agricultural Finance Review, vol. 81 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 28 February 2018

Thomas Url, Franz Sinabell and Karin Heinschink

After several reforms of the common agricultural policy, domestic product prices and farm incomes have become more volatile in the EU. Risk-averse farmers are therefore seeking…

Abstract

Purpose

After several reforms of the common agricultural policy, domestic product prices and farm incomes have become more volatile in the EU. Risk-averse farmers are therefore seeking income stabilizing measures. Margin insurance is among the feasible options but is not yet established in the EU. The purpose of this paper is to explore such an insurance under EU conditions for a major crop.

Design/methodology/approach

The paper explores conditions for a viable margin insurance. It presents a modeled-loss trigger for a margin insurance scheme using wheat production in Austria as the case study.

Findings

While margin insurance products are widely used in the USA, such products are not available in the EU. Basis risk seems to be an important reason. An exploration of wheat production in Austria shows that heterogeneity among farms is relevant. The authors demonstrate an approach aiming to lower basis risks.

Research limitations/implications

This paper presents a technically feasible approach to handle the basis risk of a margin insurance under EU conditions. Before such a product can be placed on the market, further research on systemic risk is needed. Market research is necessary to fine-tune the details of the product to meet the actual demand of farmers. Further empirical validation of the modeled losses is needed. Legal implications are not explored in this paper.

Practical implications

The insurance product presented here demonstrates a concept that is established in the USA under EU conditions. It is motivated by several shortcomings of income risk mitigation approaches in the EU.

Social implications

Income risk may be seen as a problem of social policy. The approach shows that it can be addressed by market-oriented instruments.

Originality/value

To the authors’ knowledge, this paper is the first to propose a tool to handle basis risk for margin insurance products in agriculture in the EU. A special feature of the proposed approach is that it is not limited to a single product such as wheat.

Details

Agricultural Finance Review, vol. 78 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 1 February 1990

Gordon Wills, Sherril H. Kennedy, John Cheese and Angela Rushton

To achieve a full understanding of the role ofmarketing from plan to profit requires a knowledgeof the basic building blocks. This textbookintroduces the key concepts in the art…

16054

Abstract

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

Details

Management Decision, vol. 28 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 4 December 2017

Donald D. Hackney, Daniel Friesner and Erica H. Johnson

The purpose of this paper is to examine whether the timing associated with the implementation of the health insurance-related provisions of the Patient Protection and Affordable…

Abstract

Purpose

The purpose of this paper is to examine whether the timing associated with the implementation of the health insurance-related provisions of the Patient Protection and Affordable Care Act (ACA) altered the presence and distribution of medical/non-medical debts accumulated by different types of bankruptcy filers.

Design/methodology/approach

Data were drawn from the US Bankruptcy Court’s Eastern Washington District over the years 2009, 2011 and 2014 using interval random sampling. Binary probit and Tobit analyses were used to model the existence, and distribution, of medical debts and total debts, respectively, at the time of filing. The impact of the time frame associated with the ACA was operationalized via a Chow test for structural dynamic change.

Findings

Chapter 13 filers in 2014 (post-ACA-based health exchange implementation) were more likely to report medical debts than Chapter 7 filers in the pre-intervention period, and were also more likely to report a larger proportion of outstanding debts owed to a single creditor. Filers claiming health insurance premium expenses in 2011 were (at the 10 percent significance level) more likely to report a more skewed distribution of medical debts.

Originality/value

The time frame associated with the implementation of the ACA impacts the distribution of medical debts among filers who have sufficient net disposable income to fund a Chapter 13 plan. The polarization of outstanding medical debts may indicate coverage gaps in existing health insurance policies, whose costs would be disproportionately borne by patients operating on thin financial margins.

Details

International Journal of Social Economics, vol. 44 no. 12
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 20 June 2003

Mark C Berger, Dan A Black, Amitabh Chandra and Frank A Scott

In the spirit of Polachek (1975) and the later work of Becker (1985) on the role of specialization within the family, we examine the relationship between fringe benefits and the…

Abstract

In the spirit of Polachek (1975) and the later work of Becker (1985) on the role of specialization within the family, we examine the relationship between fringe benefits and the division of labor within a married household. The provision of fringe benefits is complicated by their non-additive nature within the household, as well as IRS regulations that stipulate that they be offered in a non-discriminatory manner in order to maintain their tax-exempt status. We model family decisions within a framework in which one spouse specializes in childcare and as a result experiences a reduction in market productive capacity. Our model predicts that the forces toward specialization become stronger as the number of children increase, so that the spouse specializing in childcare will have some combination of lower wages, hours worked, and fringe benefits. We demonstrate that to the extent that labor markets are incomplete, the family is less likely to obtain health insurance from the employer of the spouse that specializes in childcare. Using data from the April 1993 CPS we find evidence consistent with our model.

Details

Worker Well-Being and Public Policy
Type: Book
ISBN: 978-1-84950-213-9

Book part
Publication date: 30 September 2014

Karina Doorley and Eva Sierminska

Using harmonized wealth data and a novel decomposition approach in this literature, we show that cohort effects exist in the income profiles of asset and debt portfolios for a…

Abstract

Using harmonized wealth data and a novel decomposition approach in this literature, we show that cohort effects exist in the income profiles of asset and debt portfolios for a sample of European countries, the United States, and Canada. We find that the association between household wealth portfolios at the intensive margin (the level of assets) and household characteristics is different from that found at the extensive margin (the decision to own). Characteristics explain most of the cross-country differences in asset and debt levels, except for housing wealth, which displays large unexplained differences for both the under-50 and over-50 populations. However, there are cohort differences in the drivers of wealth levels. We observe that younger households’ levels of wealth, given participation, may be more responsive to the institutional setting than mature households. Our findings have important implications, indicating a scope for policies which can promote or redirect investment in housing for both cohorts and which promote optimal portfolio allocation for mature households.

Details

Economic Well-Being and Inequality: Papers from the Fifth ECINEQ Meeting
Type: Book
ISBN: 978-1-78350-556-2

Keywords

Book part
Publication date: 15 November 2023

Virginia M. Miori

This chapter will identify readily accessible existing sources of public data. Thechallenges of using that data are considerable and require extensive time to ensure validity for…

Abstract

This chapter will identify readily accessible existing sources of public data. Thechallenges of using that data are considerable and require extensive time to ensure validity for reporting purposes. Summaries of data field selection and data wrangling requirements are presented in conjunction with data aggregation strategies.

Details

Data Ethics and Digital Privacy in Learning Health Systems for Palliative Medicine
Type: Book
ISBN: 978-1-80262-310-9

Keywords

Article
Publication date: 12 March 2018

Eman Refaat and Ali Hadi

The purpose of this paper is to construct, for the first time, composite index for Egypt that measures the economic and social rights fulfillment (ESRF) based on socioeconomic…

Abstract

Purpose

The purpose of this paper is to construct, for the first time, composite index for Egypt that measures the economic and social rights fulfillment (ESRF) based on socioeconomic surveys at the household/individual levels.

Design/methodology/approach

The paper highlights some of the statistical debatable issues about composite indices and focuses mainly on six of them. Those issues are indicators selection, handling missing data, identification of and dealing with outliers, scale of measurement, computing the margin of error, weights assigned for indicators and domains and aggregation method. Handling these problematic issues gave rise to a rigorous index.

Findings

The quality of economic and social rights fulfillment index (ESRFI) is judged by its bootstrap standard error. Based on these margin of errors, confidence intervals can be computed and rigorous comparisons across all disaggregation levels of the ESRFI can be made. The results shows that the overall index is accurate and representative in measuring the ESRF in Egypt. Comparisons between rural and urban regions indices show that the rural areas are always worse than the urban areas in all levels of dimensions, especially for the Right to Education and Adequate Housing.

Research limitations/implications

The ESRFI is not very current because it is based on the 2010 Egyptian Household Conditions Observatory Survey (EHCOS), which is the latest published version of the survey with complete variables for the index data. When the next EHCOS becomes available, an updated ESRFI can be easily and quickly constructed.

Practical implications

The ESRFI could strengthen policy formulation that takes into account ESRF, especially by highlighting the situation in different regions and disaggregation levels.

Social implications

The proposed ESRFI would strengthen policy formulation that takes into account ESRF, especially by highlighting the situation in different regions and different disaggregation levels.

Originality/value

The paper emphasizes the importance of recognizing and handling of the six problematic issues that arise when constructing composite indices. The paper presents the first ESRFI for Egypt and demonstrates the rigor of its construction.

Details

International Journal of Sociology and Social Policy, vol. 38 no. 1/2
Type: Research Article
ISSN: 0144-333X

Keywords

Book part
Publication date: 15 July 2017

Vincent H. Smith and Joseph W. Glauber

In the United States, successive farm bills and the 2007 Renewable Fuels Standard (RFS) have largely defined domestic subsidy and conservation programs and U.S. food-aid…

Abstract

In the United States, successive farm bills and the 2007 Renewable Fuels Standard (RFS) have largely defined domestic subsidy and conservation programs and U.S. food-aid initiatives over the past decade. This chapter examines the effects of the current mixture of U.S. agricultural policies and international food-aid programs on domestic and global food-insecure populations. A detailed research-based examination is carried out with respect to the impacts of U.S. subsidy programs on agricultural production, domestic and global agricultural commodity prices, and their implications for food-insecure populations. The impacts of the RFS are assessed along with the effects of current and potentially reformed U.S. international food-aid programs.

This study concludes that current U.S. agricultural subsidy programs have small or negligible impacts on the aggregate level and mixture of U.S. agricultural output, U.S. domestic prices and global prices, and domestic and global food insecurity among poor households. The RFS has increased prices for food and feed grain and oilseeds with adverse implications for the urban poor in developing countries and some poor U.S. households. The portfolios of U.S. food-aid programs are managed inefficiently because of congressional mandates designed to aid special interest groups that waste 30% of the current budget. While U.S. subsidy programs likely should be moderated for other reasons, they have few impacts on domestic and globally food-insecure households. However, in relation to global and domestic food insecurity, the RFS should be discontinued and major reforms to U.S. international food aid implemented.

Details

World Agricultural Resources and Food Security
Type: Book
ISBN: 978-1-78714-515-3

Keywords

Article
Publication date: 6 June 2016

Kim Abildgren

The 1950s was characterised by pronounced stability of the banking sector in many countries, which the existing literature has attributed to tight regulation. However, other…

Abstract

Purpose

The 1950s was characterised by pronounced stability of the banking sector in many countries, which the existing literature has attributed to tight regulation. However, other factors than regulation are important for financial stability. The purpose of this paper is to consider the case of Denmark and investigate whether the absence of banking crises was due to robustness of the banking sector’s customers rather than tight regulation.

Design/methodology/approach

The paper analyses the resilience of Danish wage and salary earners to adverse economic shocks in the 1950s based on household-level data on income, consumption, savings and wealth from the Danish Expenditure and Saving Survey of 1955.

Findings

The paper finds that the Danish household sector in the 1950s had a high debt payment ability and was very robust to even large income shocks. The results indicate that the stability of the Danish financial sector was not only due to tight regulation but also reflected a high credit quality of the banking sector’s loan portfolio.

Originality/value

During the past decade or so, a micro-data-based framework has become the “state of the art” approach among central banks to analyse the financial robustness of the household sector. However, such an approach has so far not been applied in studies on historical financial-stability issues. The paper adds to the literature by using granular household-level data to assess the financial resilience of the Danish household sector in the 1950s.

Details

Studies in Economics and Finance, vol. 33 no. 2
Type: Research Article
ISSN: 1086-7376

Keywords

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