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STAX Appeal?
Author(s) -
Yehouenou Lauriane,
Barnett Barry J,
Harri Ardian,
Coble Keith H
Publication year - 2018
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppx060
Subject(s) - crop insurance , appeal , product (mathematics) , complement (music) , yield (engineering) , business , agricultural science , agricultural economics , economics , agriculture , geography , political science , mathematics , environmental science , biochemistry , chemistry , materials science , geometry , archaeology , complementation , metallurgy , law , phenotype , gene
Abstract The Stacked Income Protection Plan (STAX) county‐level insurance product is analyzed for cotton producers in Texas. In contrast to studies based on representative farms, this analysis uses actual farm‐level yield data, which allows one to observe the heterogeneity of STAX effectiveness across farms in a county. The findings indicate that, for most farms, STAX is not a very effective alternative to farm‐level crop insurance. However, contrary to observed behavior, the findings suggest that many cotton producers in Texas would benefit from using STAX as a complement to their farm‐level crop insurance.