Who Is Afraid of Biotic Threats? An Econometric Analysis of Veneto Wine Grape Farmers’ Propensity to Insure

Laura Onofri, Samuele Trestini and Vasco Boatto
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Laura Onofri: Department of Land, Environment, Agriculture and Forestry, University of Padua, Via dell’Università 16, 35020 Legnaro (PD), Italy
Vasco Boatto: Department of Land, Environment, Agriculture and Forestry, University of Padua, Via dell’Università 16, 35020 Legnaro (PD), Italy

Agriculture, 2020, vol. 10, issue 8, 1-9

Abstract: This paper aims at understanding what affects farmers’ choices to buy insurance against biotic threats. Using a survey-based dataset with 1187 observations on Veneto wine grapes farms, we regress a probit model with endogenous variables with a maximum likelihood (ML) routine. The results corroborate the microeconomic theory according to which risk-adverse individuals are more propense to insure. In our framework, the farmers’ socioeconomic characteristics are treated as endogenous variables, which exist/are predetermined before the choice to insure (or not). This paper discusses the results in a policy perspective.

Keywords: risk aversion/propensity; probit with endogenous regressors; maximum likelihood estimation routing; insurance market; missing markets (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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