Table 3 Results RQ2: Comparing Risk reducing Properties between WII.

From: Phenology Information Contributes to Reduce Temporal Basis Risk in Agricultural Weather Index Insurance

Coefficient of relative risk aversion α

H0:EUyear ≥ EUimm

H0:EUyear ≥ EUGDD

H0:EUimm ≥ EUGDD

p-value

0 (risk neutral)

0.50

0.23

0.17

0.5

0.27

3.77·10−2

5.97·10−2

1

0.35

3.77·10−2

3.94·10−2

2

0.13

2.38·10−2

4.73·10−2

3

0.10

1.98·10−2

5.97·10−2

4 (extremely risk averse)

0.10

1.98·10−2

8.29·10−2

  1. EUyear: Vector of expected utility values of insured farmers using yearly phenology reporters’ data.
  2. EUimm: Vector of expected utility values of insured farmers using immediate phenology reporters’ data.
  3. EUGDD: Vector of expected utility values of insured farmers using growing degree days modeling.
  4. EUnoins: Vector of expected utility values of uninsured farmers.
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