The Economics of Nested Insurance: The Case of SURE

Traditionally, disaster assistance was available on an ad hoc basis, but the 2008 Farm Act provides a standing disaster assistance program known as Supplemental Revenue Assistance (SURE). This paper introduces a theory of nested insurance to evaluate the impact on of SURE on intensification, acreage and adoption. The results suggest that parameters of a government program like SURE may enhance the adoption and value of crop insurance to the farm sector. A quantitative understanding of the interdependencies between programs like SURE and crop insurance, taking into account the nature of the ad hoc alternative, is important in assessing the welfare impacts on farmers, as well as insurance companies. Both our theory and simulation exercise suggest that insurance increases the volume of production and/or leads to increased intensification (substitution into higher value crops). On the other hand, the gains from insurance and from programs like SURE may be lessened by the presence and probability of ad hoc disaster assistance.Nested insurance, SURE, crops, adoption, ad hoc, disaster assistance, Crop Production/Industries, Risk and Uncertainty,

Seasonality Effects on Consumers Preferences Over Quality Attributes of Different Beef Products

Using discrete choice modelling, the study investigates 946 American consumers willingness-to-pay and preferences for diverse beef products. A novel experiment was used to elicit the number of beef products that each consumer would purchase. The range of products explored in this study included ground, diced, roast, and six cuts of steaks (sirloin, tenderloin, flank, flap, New York and cowboy or rib-eye). The outcome of the study suggests that US consumers vary in their preferences for beef products by season. The presence of a USDA certification logo is by far the most important factor affecting consumers willingness to pay for all beef cuts, which is also heavily dependent on season. In relation to packaging, US consumers have mixed preference for different beef products by season. The results from a scaled adjusted ordered logit model showed that after price, safety-related attributes such as certification logos, types of packaging, and antibiotic free and organic products are a stronger influence on American consumers choice. Furthermore, US consumers on average purchase diced and roast products more often in winter slow cooking season, than in summer, whereas New York strip and flank steak are more popular in the summer grilling season. This study provides valuable insights for businesses as well as policymakers to make inform decisions while considering how consumers relatively value among different labelling and product attributes by season and better address any ethical, safety and aesthetic concerns that consumers might have

Effect of flow pattern at pipe bends on corrosion behaviour of low carbon steek and its challenges

Recent design work regarding seawater flow lines has emphasized the need to identify, develop, and verify critical relationships between corrosion prediction and flow regime mechanisms at pipe bend. In practice this often reduces to an pragmatic interpretation of the effects of corrosion mechanisms at pipe bends. Most importantly the identification of positions or sites, within the internal surface contact areas where the maximum corrosion stimulus may be expected to occur, thereby allowing better understanding, mitigation, monitoring and corrosion control over the life cycle. Some case histories have been reviewed in this context, and the interaction between corrosion mechanisms and flow patterns closely determined, and in some cases correlated. Since the actual relationships are complex, it was determined that a risk based decision making process using selected ‘what’ if corrosion analyses linked to ‘what if’ flow assurance analyses was the best way forward. Using this in methodology, and pertinent field data exchange, it is postulated that significant improvements in corrosion prediction can be made. This paper outlines the approach used and shows how related corrosion modelling software data such as that available from corrosion models Norsok M5006, and Cassandra to parallel computational flow modelling in a targeted manner can generate very noteworthy results, and considerably more viable trends for corrosion control guidance. It is postulated that the normally associated lack of agreement between corrosion modelling and field experience, is more likely due to inadequate consideration of corrosion stimulating flow regime data, rather than limitations of the corrosion modelling. Applications of flow visualization studies as well as computations with the k-ε model of turbulence have identified flow features and regions where metal loss is a maximu