Three Essays On Agricultural Risk And Insurance
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Three Essays On Agricultural Risk And Insurance
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Author : Li Zhang
language : en
Publisher:
Release Date : 2008
Three Essays On Agricultural Risk And Insurance written by Li Zhang and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2008 with categories.
Three Essays On Agricultural Risk Insurance And Technology
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Author : Ligia Vado Sequeira
language : en
Publisher:
Release Date : 2010
Three Essays On Agricultural Risk Insurance And Technology written by Ligia Vado Sequeira and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010 with categories.
Three Essays In Agricultural Insurance
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Author : Xianglin Liu
language : en
Publisher:
Release Date : 2016
Three Essays In Agricultural Insurance written by Xianglin Liu and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
In this dissertation, I present three essays studying agricultural insurance in both developing and developed countries. Farmers face numerous risks including production, price, financial, etc. In response, farmers may seek agricultural insurance to cover some of these risks. Different questions of rainfall insurance and crop insurance are considered in this dissertation, and natural experiment and Propensity Score Matching method are applied in measuring the impact a “treatment” on insurance participation rates for farmers. Chapter 1 is an extensive review of China’s agricultural insurance market. I first summarize the history of the market for agricultural insurance in China, which between 2007 and 2013 grew an average of 30% annually and is now the second largest market in the world. I then review major agricultural insurance programs introduced by the Chinese government during this period. I also identify the major challenges that have to be overcome to further develop agricultural insurance in China, and discuss reforms that have been proposed to address them. In Chapter 2, I estimate farmers’ willingness to pay (WTP) for a hypothetical rainfall index insurance product, with a special interest in whether recent experience with a natural disaster increases the WTP. My findings are based on a survey of small farm households in China’s Heilongjiang Province, which suffered a large flood in the summer of 2013. I find a significantly higher propensity to purchase rainfall index insurance for farmers who experienced the flood in 2013 than farmers who did not. I also find a much higher WTP for rainfall index insurance for farmers affected by the flood. My findings imply that past experience in major disasters could alter farmers’ risk perception and lead to a higher demand for risk management tools such as crop insurance. In Chapter 3, I examine whether U.S. farmers using fixed-cash lease are more likely to purchase federal crop insurance (FCI). Farmland rental lease choice plays a significant role in farm management decision making. Fixed-cash agreement has become the most widely used leasing contract in the United States, despite the fact that it is riskier than other types of farmland leasing contracts. A propensity score matching method is used to compare FCI participation rate between farmers under fixed-cash rental contract and farmers under other types of leasing arrangement. By analyzing a farm-level national survey data, the results show that using fixed-cash rental agreement significantly increases FCI participation rate, providing evidence that FCI is adopted by farmers as an effective risk management tool to reduce production risks.
Three Essays On Risk Preferences And Farm Decision Making In The United States
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Author : Sankalp Sharma
language : en
Publisher:
Release Date : 2016
Three Essays On Risk Preferences And Farm Decision Making In The United States written by Sankalp Sharma and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with Decision making categories.
Crop insurance is a frequent topic of debate among policymakers. This dissertation answers questions relevant to the current discussion about the cost of insurance, participation in the insurance program and the relationship between farm characteristics and crop insurance returns.
Three Essays On Risk Management And Irrigation Water Demand In Agriculture
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Author : Pin Lu
language : en
Publisher:
Release Date : 2022
Three Essays On Risk Management And Irrigation Water Demand In Agriculture written by Pin Lu and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with Electronic dissertations categories.
Both extensive (share of insured acres in total insurable acres) and intensive (coverage level choice) margin participation rates in the U.S. crop insurance program have increased due to generous subsidies. On a national scale, this program has been well rated to satisfy the actuarial fairness requirement by USDA Risk Management Agency. However, sizeable spatial heterogeneity remains across the Great Plains and Corn Belt regions. If subsidies were to be reduced in the future because of financial constraints, such heterogeneity might be detrimental to the sustainability of the crop insurance program. A central theme of this dissertation is to investigate how farmers make participation decisions when risk factors exist. In a separate but related line of work, this dissertation also explores the irrigation water usage in the Great Lakes region because farmers' irrigation behavior reflects their risk preferences and impacts their incentives for enrolling in the program. The dissertation consists of three essays on farmers' decisions regarding premium mispricing, basis risk, and irrigation water usage. The first essay proposes a novel resampling procedure to estimate farm-level actuarially fair premiums. The resampling procedure mainly contains two parts: (i) semi-parametric quantile regression; and (ii) rejection method. Many previous studies explore whether county-level mispricing exists based on the historical loss ratio records. However, we can identify farm-level mispricing by imputing actuarially fair premiums based on historical yield records, consistent with theory. We find that farmers with lower land quality cropland paid fewer premiums than they should, but a contrary case happens for farmers with higher land quality cropland. Empirical evidence shows farmers may be more concerned about mispricing than subsidy transfer. Regression results support a conclusion that such farm-level mispricing deters farmers' crop insurance demand. Our analysis sheds light on the policy-making that: (i) mispricing may be a substitution of subsidy so mitigating mispricing can maintain high participation while saving subsidies; and (ii) imputation of premiums based on historical yield records can apply.The second essay focuses on the impact of basis risk on participation rates in the U.S. crop insurance program. In recent years, basis risk has been increasingly recognized as an essential driver for deterring insurance uptake. Most research concentrates on index insurance contracts; however, few investigate the effect of mismatch between cash and futures markets on farmers' insurance decisions. We first build a conceptual model to show farmers' acreage response to basis risk within the expected utility framework. Next, we apply the Fractional Probit with Control Function for the empirical analysis and find that the effects of basis risk on participation rates are significantly negative for nearly all insurance contracts. Our analysis implies that: (i) to remove basis risk, revision for revenue contract may be considered; (ii) subsidy structure may be adjusted to be consistent with the underlying basis risk. The third essay investigates irrigation water usage in the Great Lakes region. Although the water conservation policy was implemented, there has been an upward trend in irrigation water demand from 2003 to 2018, including irrigated acres and total water usage. We employ firm-level irrigation data to examine what factors impact farmers' response to irrigation water usage. We find that: (i) price elasticities vary significantly according to model specifications and water costs; (ii) demand at both extensive (irrigated acres) and intensive (water application per acre) margins is input price inelastic; and (iii) price elasticities are homogeneous across crops but heterogeneous across states. For the policy-making, if there is a 10% tax on irrigation water cost, total water usage decreases by about 4% for corn and soybean, respectively.
Three Essays On Agricultural And Catastrophic Risk Management
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Author : Shu-Ling Chen
language : en
Publisher:
Release Date : 2007
Three Essays On Agricultural And Catastrophic Risk Management written by Shu-Ling Chen and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2007 with categories.
In this dissertation, I examine three issues related to agricultural and catastrophic risk management. In my first essay, "Modeling Yield Distribution in High Risk Counties: Application to Texas Upland Cotton", I develop models of yield distributions for crops and regions whose yields exhibit irregular behavior. Specifically, I undertake a statistical case study of Texas upland cotton, which in recent years has exhibited poor actuarial performance under the U.S. crop insurance program, and propose an alternative mixture distribution model in which the conditional distribution of yield depends upon an observable drought index. The results indicate that the mixture distribution model provides a better fit to the data than conventional parametric distributions and, for more than two-thirds of the Texas counties examined, implies Group Risk Plan insurance premium rates that are greater than those currently published by the U.S. Department of Agricultural Risk Management Agency.
Three Essays On Systemic Risk And Rating In Crop Insurance Markets
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Author : Joshua D. Woodard
language : en
Publisher: ProQuest
Release Date : 2008
Three Essays On Systemic Risk And Rating In Crop Insurance Markets written by Joshua D. Woodard and has been published by ProQuest this book supported file pdf, txt, epub, kindle and other format this book has been release on 2008 with categories.
The second essay investigates the loss performance of the Federal Crop Insurance program. Historically, government insurance programs tend to be ineffective at segregating risks, leading to markets that are inefficient. In the case of the Federal Crop Insurance program, rates are set non-competitively. This study develops a spatial econometric model of loss experience and finds evidence of geographic misratings. The results also suggest that substantial actuarial cross-subsidization is resulting from the apparent rating inequities, which has a variety of welfare implications.
Three Essays On Risk And Uncertainty In Agriculture
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Author : Nicholas D. Paulson
language : en
Publisher:
Release Date : 2007
Three Essays On Risk And Uncertainty In Agriculture written by Nicholas D. Paulson and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2007 with categories.
Three Essays On Extensions In Risk Uncertainty And Insurance
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Author : Christopher Andrew Whaley
language : en
Publisher:
Release Date : 2016
Three Essays On Extensions In Risk Uncertainty And Insurance written by Christopher Andrew Whaley and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with Electronic dissertations categories.
In the first essay, we prove existence and uniqueness of equilibrium in a rent-seeking contest given a class of heterogeneous risk-loving players. We explore the role third-order risk attitude plays in equilibrium and find that imprudence is sufficient for risk lovers to increase rent-seeking investment above the risk-neutral outcome. Moreover, we show that rent can be fully dissipated in a standard Tullock contest when there is a large number of risk-loving players. In the second essay, we investigates the impact classic variables like medical care and lifestyle choices have on the mean, variance and skewness of a health distribution. We achieve this by positing health as output from a stochastic production process, a seemingly practical advantage over much of the deterministic literature. We leverage this unique approach to estimate how a set of explanatory variables impact the conditional moments of a health distribution. We then use these moments in a maximum entropy framework to analyze the shape impact of medical care. We find evidence of "flat of the curve'' medicine but also demonstrate the higher-order benefits of additional medical care. In the third and final essay, we investigate risk in the context of farmer and their choice of irrigation. While the benefits and utilization of crop irrigation have long been examined in agricultural economics, little attention is paid to the potential confounding relationship that may exist with other risk-management tools. Specifically, we pursue how standard crop insurance relates to irrigation. We identify irrigation as a form of self-protection, reducing the probability of crop loss due to adverse stochastic conditions. Given this, we investigate if irrigation acts as a complement to crop insurance. We test this relationship within a model of crop yields, identifying that jointly irrigated and insured lands both receive higher average yield and lead to variance and skewness effects on the overall yield distribution.
Three Essays On The Economic Sustainability Of Drought Insurance And Soil Investment For Smallholder Farmers In The Developing World
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Author : John Paul Dougherty
language : en
Publisher:
Release Date : 2018
Three Essays On The Economic Sustainability Of Drought Insurance And Soil Investment For Smallholder Farmers In The Developing World written by John Paul Dougherty and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018 with Agriculture categories.
Smallholder agriculture in the developing world is subject to numerous risks and trends. This dissertation investigates the economic sustainability of mechanisms used by smallholder farmers to mitigate risk as they adapt to a changing environment. The first two essays focus on index-based drought insurance and its relationship to changing risk caused by climate change and the growth of rural microfinance programs. The third essay focuses on how smaller farm sizes due to rural population growth affect farmer incentives to invest in soil quality. The first essay utilizes a framed field experiment in Tanzania and a structural learning model to study how climate change affects the demand for index insurance programs. I find evidence that demand will likely not keep pace with rising premiums in the absence of subsidies, threatening the economic sustainability of these programs in areas of changing risk. The second essay utilizes an analytic theoretical model to study the interaction between index insurance and microfinance programs. I find that if premiums are sufficiently low, coupling index insurance and microfinance can help mitigate the moral hazard problem inherent in loan contracts. The third essay utilizes a theoretical model and a panel data set from Tanzania to test how decreased farm sizes caused by population growth affect investment in fertilizer and soil quality. I find that smaller farm sizes lead to greater fertilizer use, particularly for organic materials such as compost and manure, and an indeterminate effect on soil quality.