With big data come big problems: pitfalls in measuring basis risk for crop index insurance

no code implementations • 29 Sep 2022 • Matthieu Stigler, Apratim Dey, Andrew Hobbs, David Lobell

More precisely, we derive the asymptotic distribution of the relative share of the first eigenvalue of the covariance matrix, a measure of systematic risk in index insurance.

Optimal index insurance and basis risk decomposition: an application to Kenya

no code implementations • 16 Nov 2021 • Matthieu Stigler, David Lobell

Basis risk arises from two fundamental sources: the intrinsic heterogeneity within an insurance zone (zonal risk), and the lack of predictive accuracy of the index (design risk).

Using Satellite Imagery and Machine Learning to Estimate the Livelihood Impact of Electricity Access

no code implementations • 7 Sep 2021 • Nathan Ratledge, Gabe Cadamuro, Brandon de la Cuesta, Matthieu Stigler, Marshall Burke

In many regions of the world, sparse data on key economic outcomes inhibits the development, targeting, and evaluation of public policy.

On the benefits of index insurance in US agriculture: a large-scale analysis using satellite data

no code implementations • 25 Nov 2020 • Matthieu Stigler, David Lobell

Despite its theoretical appeal, demand for index insurance has remained low in many developing countries, triggering a debate on the causes of the low uptake.