Construct · 1 fields · 1 citations

basis risk: a standalone construct

One name. One construct. A landmark on the map.

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basis risk1 CONSTRUCTBasis riskCLARKE · AGRICULTURAL

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Agricultural economics

the chance that an index insurance payout does not match the policyholder's actual loss, which can make buying the insurance a bad bet for the most risk-averse.

In agricultural economics, basis risk refers to the chance that an index insurance payout does not match the policyholder's actual loss, which can make buying the insurance a bad bet for the most risk-averse. This meaning comes from Clarke (2016) in American Economic Journal: Microeconomics.[1]

Unit
Recovery means
Measured by

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Nearby constructs

basis3 fields · 5 citationsjingle · one word, three constructschance4 fields · 6 citationsjingle · one word, four constructsindex5 fields · 11 citationsjingle · one word, five constructs

References

  1. Clarke, D. J. (2016). A Theory of Rational Demand for Index Insurance. American Economic Journal: Microeconomics, 8(1), 283-306. https://doi.org/10.1257/mic.20140103

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