Input Demand under Yield and Revenue Insurance

Bruce Babcock and David Hennessy

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: Previous studies disagree on the effects of insurance on fertilizer application rates. The effect of increased fertilizer on the probability of low yields primarily determines whether fertilizer and insurance are substitutes or complements. We estimate conditional distributions of corn yields to determine if the technical relationship between yields and fertilizer supports the hypothesis that insurance increases optimal application rates. Our results indicate no support for this hypothesis. At all nitrogen fertilizer rates and reasonable levels of risk aversion, nitrogen fertilizer and insurance are substitutes, suggesting that those who purchase insurance are likely to decrease nitrogen fertilizer applications.

Date: 1996-01-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (163)

Downloads: (external link)
https://dr.lib.iastate.edu/server/api/core/bitstre ... c0382e622b68/content
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
Journal Article: Input Demand under Yield and Revenue Insurance (1996)
Working Paper: Input Demand Under Yield and Revenue Insurance (1996)
Working Paper: Input Demand Under Yield and Revenue Insurance (1994)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:199601010800001155

Access Statistics for this paper

More papers in ISU General Staff Papers from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().