Is there a demand for multi-year crop insurance?
Zhiwei Shen and
Martin Odening ()
SFB 649 Discussion Papers from Humboldt University, Collaborative Research Center 649
In this paper we adapt a dynamic discrete choice model to examine the aggregated demand for single- and multi-year crop insurance contracts. We show that in a competitive insurance market with heterogeneous risk averse farmers, there is simultaneous demand for both insurance contracts. Moreover, the introduction of multi-year contracts enhances the market penetration of insurance products. Using U.S. corn yield data, we empirically assess the potential of multi-year crop insurance.
Keywords: multi-year insurance; index-based crop insurance; dynamic discrete choice model (search for similar items in EconPapers)
JEL-codes: D81 G22 Q14 (search for similar items in EconPapers)
Pages: 16 pages
New Economics Papers: this item is included in nep-agr, nep-dcm and nep-ias
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Journal Article: Is there a demand for multi-year crop insurance? (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:hum:wpaper:sfb649dp2014-025
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