Discuss the main problems with agricultural crop insurance. Pay particular attention to the problems of correlation and
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Discuss the main problems with agricultural crop insurance. Pay particular attention to the problems of correlation and information. Using these concepts, comment on the possibility of a twotier system in which a giant insurance company makes insurance payouts to the village as a whole, while a village council decides on how to allocate the payouts to individual residents.
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The main problems with agricultural crop insurance can be categorized into two broad areas correlation and information issues Lets discuss these problems and then analyze the possibility of a twotier ...View the full answer
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