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A local maximum likelihood model of crop yield distributions
Author(s) -
Wu Ximing,
Zhang Yu Yvette
Publication year - 2020
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/cjag.12219
Subject(s) - estimator , smoothing , crop insurance , statistics , mathematics , poisson distribution , maximum likelihood , econometrics , poisson regression , yield (engineering) , selection (genetic algorithm) , computer science , geography , agriculture , artificial intelligence , materials science , demography , archaeology , sociology , metallurgy , population
In this note, we propose a local maximum likelihood estimator for spatially‐dependent distributions. Our estimator adopts the Poisson regression approach for density ratio models and incorporates spatial smoothing via local regression. We also present a method of smoothing parameter selection. We illustrate this easy‐to‐implement estimator with an application to the estimation of corn yield distributions of Iowa counties. The usefulness of the approach is further demonstrated via an application to the estimation of crop insurance premium.