Access the full text.
Sign up today, get DeepDyve free for 14 days.
B. Sherrick, P. Barry, P. Ellinger, G. Schnitkey (2004)
Factors Influencing Farmers' Crop Insurance DecisionsAmerican Journal of Agricultural Economics, 86
Yuzhen Zenga, Yueying Mua (2010)
International Conference on Agricultural Risk and Food Security 2010 Development Evaluation of China ’ s Policy-oriented Agricultural Insurance : Based on the Realization Degree of Policy Objectives
R. Hill, J. Hoddinott, Neha Kumar (2011)
Adoption of Weather-Index Insurance: Learning from Willingness to Pay Among a Panel of Households in Rural EthiopiaERN: Other Microeconomics: Decision-Making under Risk & Uncertainty (Topic)
P. Bardsley, Arun Abey, Scott Davenport (1984)
THE ECONOMICS OF INSURING CROPS AGAINST DROUGHTAustralian Journal of Agricultural and Resource Economics, 28
CSAE 25th Anniversary Conference 2011: Economic Development in Africa, St Catherine’s College, Oxford, March 20-22
K. Lu, Bingxin Yu (2011)
The impact of high food prices on poverty in ChinaDevelopment in Practice, 21
W. Niewuwoudt, J. Bullock (1985)
The Demand for Crop Insurance
Charles Holt, Susan Laury (2002)
Risk Aversion and Incentive EffectsAndrew Young School of Policy Studies Research Paper Series
South Finance, 427
M. Rothschild, J. Stiglitz (1976)
17 – EQUILIBRIUM IN COMPETITIVE INSURANCE MARKETS: AN ESSAY ON THE ECONOMICS OF IMPERFECT INFORMATION*
Organization for Economic Co-operation and Development (OECD) (2009)
Risk management in agriculture: a holistic conceptual framework
American Economic Review, 92
H. Wang, S. Hanson, R. Myers, J. Black (1998)
The Effects of Crop Yield Insurance Designs on Farmer Participation and WelfareERN: Agricultural Economics (Topic)
Milton Boyd, Jeffrey Pai, Qiao Zhang, H. Wang, Ke Wang (2011)
Factors affecting crop insurance purchases in China: the Inner Mongolia regionChina Agricultural Economic Review, 3
Tomomi Tanaka, Colin Camerer, Q. Nguyen (2010)
Risk and time preferences: linking experimental and household survey data from VietnamThe American Economic Review, 100
J. Harwood, R. Heifner, Keith Coble, J. Perry, A. Somwaru (1999)
Managing Risk in Farming: Concepts, Research, and AnalysisAgricultural Economics Reports
H. Binswanger (1980)
Attitudes toward risk: Experimental measurement in rural indiaArtefactual Field Experiments
Shawn Cole, X. Giné, J. Vickery (2013)
How Does Risk Management Influence Production Decisions? Evidence from a Field ExperimentBanking & Insurance eJournal
World Development, 36
S. Makki, A. Somwaru (2001)
Farmers' Participation in Crop Insurance Markets: Creating the Right IncentivesAmerican Journal of Agricultural Economics, 83
B. Goodwin (1993)
An Empirical Analysis of the Demand for Multiple Peril Crop InsuranceAmerican Journal of Agricultural Economics, 75
S. Changnon (2002)
Impacts of the Midwestern Drought Forecasts of 2000Journal of Applied Meteorology, 41
Linging Hou, D. Hoag, Y. Mu (2011)
Testing for adverse selection of crop insurance in northern ChinaChina Agricultural Economic Review, 3
Milton Boyd, H. Wang (2011)
The role of public policy and agricultural risk management in food security Public policy: implications for food securityChina Agricultural Economic Review, 3
Quarterly Journal of Economics, 90
Keith Coble, T. Knight, R. Pope, Jeffery Williams (1997)
An Expected‐Indemnity Approach to the Measurement of Moral Hazard in Crop InsuranceWiley-Blackwell: American Journal of Agricultural Economics
H. Wang, Yanping Zhang, Laping Wu (2011)
Is contract farming a risk management instrument for Chinese farmers?: Evidence from a survey of vegetable farmers in ShandongChina Agricultural Economic Review, 3
J. Atwood, Myles Watts, A. Baquet (1996)
An Examination of the Effects of Price Supports and Federal Crop Insurance Upon the Economic Growth, Capital Structure, and Financial Survival of Wheat Growers in the Northern High PlainsEconometric Modeling: Agriculture
R. Innes (2003)
Crop Insurance in a Political Economy: An Alternative Perspective on Agricultural PolicyAmerican Journal of Agricultural Economics, 85
George Patrlck (1988)
Mallee Wheat Farmers' Demand For Crop And Rainfall InsuranceAustralian Journal of Agricultural and Resource Economics, 32
B. Gardner, R. Kramer (1986)
Experience with crop insurance programs in the United States
R. Fraser (1992)
AN ANALYSIS OF WILLINGNESS‐TO‐PAY FOR CROP INSURANCE*Australian Journal of Agricultural and Resource Economics, 36
P. Hazell, L. Bassoco, G. Arcia (1986)
A model for evaluating farmers' demand for insurance: Applications in Mexico and Panama
World Bank Economic Review, 22
M. Lipton (1989)
Agricultural research and modern plant varieties in Sub‐Saharan Africa: Generalizations, realities and conclusionsJournal of International Development, 1
Funing Zhong, M. Ning, L. Xing (2007)
Does crop insurance influence agrochemical uses under current Chinese situations? A case study in the Manasi watershed, XinjiangAgricultural Economics, 36
Agriculture and Agricultural Science Procedia
Qiujie Zheng, H. Wang, Qing-Hua Shi (2014)
Estimating bivariate yield distributions and crop insurance premiums using nonparametric methodsApplied Economics, 46
Keith Coble, R. Pope, Jeffery Williams (1996)
Modeling Farm‐Level Crop Insurance Demand with Panel DataMicroeconomics: Decision-Making under Risk & Uncertainty eJournal
M. Vandeveer, E. Loehman (1994)
Farmer Response to Modified Crop Insurance: A Case Study of Corn in IndianaAmerican Journal of Agricultural Economics, 76
B. Barnett, C. Barrett, J. Skees (2006)
Poverty Traps and Index Based Risk Transfer ProductsERN: Human Development in Developing Economies (Topic)
T. Knight, Keith Coble (1997)
Survey of U.S. Multiple Peril Crop Insurance Literature Since 1980Applied Economic Perspectives and Policy, 19
Market and Trade Economics Division and Resource Economics Division
Public Disclosure Authorized Public Disclosure Authorized Patterns of Rainfall Insurance Participation
PurposeThe purpose of this paper is to contribute to the aforementioned literature on the linkage between economic activity and human preference by estimating the cross-sectional determinants of farmers’ participation in participation in crop insurance programs (CIPs) and identifying the impediments preventing the remaining farmers from participating.Design/methodology/approachUsing the unique data sets of risk preference experiments and maize producer surveys pertaining to the maize production areas of China, this paper explores the determinants of farmers’ CIPs and scrutinizes the role of risk aversion in farmers’ CIP purchase decisions under the expected utility maximization framework. And a “non-zero threshold probit model” is used for the analysis.FindingsThe results show that risk aversion plays an important role in CIP purchase decision-making, not only in the form of its direct effect but also with regard to the interaction term and expected loss. Furthermore, if the insured amount is high enough, then risk aversion will no longer affect insurance purchase. Additionally, purchase experience, CIP environment (village purchase ratio), and contract items (insured amounts) are significant determinates in these decisions. There is no significant evidence to suggest that serious adverse selection exists in the sampling areas.Originality/valueOne theoretical model is established which considered not only general variables like farmers’ production and household information, but also conditions and terms in the insurance policies. The unique experimental method is used to measure farmers’ risk aversion. Both the role of risk aversion and its’ interaction terms with others in CIP participation are scrutinized to identify complicated influences under the context of real society.
China Agricultural Economic Review – Emerald Publishing
Published: Feb 6, 2017
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.