Advantageous selection in crop insurance: Theory and evidence
We extend the recently proposed multi‐dimensional asymmetric information model to show that advantageous selection could be present in crop insurance with two types of coverage: (i) multiple perils (e.g. a multi‐peril, ‘all risk’ policy), and (ii) a specific named peril (or set of perils). Our theor...
| Autores principales: | , , , |
|---|---|
| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Wiley
2018
|
| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/164889 |
| _version_ | 1855537824498974720 |
|---|---|
| author | He, Juan Rejesus, Roderick Zheng, Xiaoyong Yorobe, Jose |
| author_browse | He, Juan Rejesus, Roderick Yorobe, Jose Zheng, Xiaoyong |
| author_facet | He, Juan Rejesus, Roderick Zheng, Xiaoyong Yorobe, Jose |
| author_sort | He, Juan |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We extend the recently proposed multi‐dimensional asymmetric information model to show that advantageous selection could be present in crop insurance with two types of coverage: (i) multiple perils (e.g. a multi‐peril, ‘all risk’ policy), and (ii) a specific named peril (or set of perils). Our theoretical model suggests that certain characteristics of an insured farmer (or farm) under both types of coverage can be sources of advantageous selection. Farmers who advantageously select are more likely to purchase insurance coverage and less likely to realise a loss. A supplementary empirical analysis, based on data from the Philippine crop insurance market, illustrates how sources of advantageous selection can be identified econometrically. |
| format | Journal Article |
| id | CGSpace164889 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2018 |
| publishDateRange | 2018 |
| publishDateSort | 2018 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1648892024-12-19T14:13:28Z Advantageous selection in crop insurance: Theory and evidence He, Juan Rejesus, Roderick Zheng, Xiaoyong Yorobe, Jose crop insurance economics farmers risk We extend the recently proposed multi‐dimensional asymmetric information model to show that advantageous selection could be present in crop insurance with two types of coverage: (i) multiple perils (e.g. a multi‐peril, ‘all risk’ policy), and (ii) a specific named peril (or set of perils). Our theoretical model suggests that certain characteristics of an insured farmer (or farm) under both types of coverage can be sources of advantageous selection. Farmers who advantageously select are more likely to purchase insurance coverage and less likely to realise a loss. A supplementary empirical analysis, based on data from the Philippine crop insurance market, illustrates how sources of advantageous selection can be identified econometrically. 2018-09 2024-12-19T12:54:26Z 2024-12-19T12:54:26Z Journal Article https://hdl.handle.net/10568/164889 en Wiley He, Juan; Rejesus, Roderick; Zheng, Xiaoyong and Yorobe, Jose. 2018. Advantageous selection in crop insurance: Theory and evidence. J Agricultural Economics, Volume 69 no. 3 p. 646-668 |
| spellingShingle | crop insurance economics farmers risk He, Juan Rejesus, Roderick Zheng, Xiaoyong Yorobe, Jose Advantageous selection in crop insurance: Theory and evidence |
| title | Advantageous selection in crop insurance: Theory and evidence |
| title_full | Advantageous selection in crop insurance: Theory and evidence |
| title_fullStr | Advantageous selection in crop insurance: Theory and evidence |
| title_full_unstemmed | Advantageous selection in crop insurance: Theory and evidence |
| title_short | Advantageous selection in crop insurance: Theory and evidence |
| title_sort | advantageous selection in crop insurance theory and evidence |
| topic | crop insurance economics farmers risk |
| url | https://hdl.handle.net/10568/164889 |
| work_keys_str_mv | AT hejuan advantageousselectionincropinsurancetheoryandevidence AT rejesusroderick advantageousselectionincropinsurancetheoryandevidence AT zhengxiaoyong advantageousselectionincropinsurancetheoryandevidence AT yorobejose advantageousselectionincropinsurancetheoryandevidence |