Crop Insurance, Premium Subsidy and Agricultural Output
This paper studied the effects of crop insurance on agricultural output with an economic growth model. Based on Ramsey-Cass-Koopmans (RCK) model, a basic model of agriculture economic growth was developed. Extending the basic model to incorporate uncertainty and insurance mechanism, a risk model and...
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| Format: | Article |
| Language: | English |
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KeAi Communications Co., Ltd.
2014-11-01
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| Series: | Journal of Integrative Agriculture |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2095311913606747 |
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| _version_ | 1839598449294573568 |
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| author | Jing-feng XU Pu LIAO |
| author_facet | Jing-feng XU Pu LIAO |
| author_sort | Jing-feng XU |
| collection | DOAJ |
| description | This paper studied the effects of crop insurance on agricultural output with an economic growth model. Based on Ramsey-Cass-Koopmans (RCK) model, a basic model of agriculture economic growth was developed. Extending the basic model to incorporate uncertainty and insurance mechanism, a risk model and a risk-insurance model were built to study the influences of risk and crop insurance on agricultural output. Compared with the steady states of the three models, the following results are achieved: (i) agricultural output decreases if we introduce uncertainty into the risk-free model; (ii) crop insurance promotes agriculture economic growth if insurance mechanism is introduced into the risk model; (iii) premium subsidy constantly improves agricultural output. Our contribution is that we studied the effects of crop insurance and premium subsidy from the perspective of economic growth in a dynamic framework, and proved the output promotion of crop insurance theoretically. |
| format | Article |
| id | doaj-art-ad63f34c69ca498dbd0d4f29a7b3e22d |
| institution | Matheson Library |
| issn | 2095-3119 |
| language | English |
| publishDate | 2014-11-01 |
| publisher | KeAi Communications Co., Ltd. |
| record_format | Article |
| series | Journal of Integrative Agriculture |
| spelling | doaj-art-ad63f34c69ca498dbd0d4f29a7b3e22d2025-08-02T16:37:20ZengKeAi Communications Co., Ltd.Journal of Integrative Agriculture2095-31192014-11-01131125372545Crop Insurance, Premium Subsidy and Agricultural OutputJing-feng XU0Pu LIAO1China Institute for Actuarial Science, Central University of Finance and Economics, Beijing 100081, P.R. China; Correspondence XU Jing-fengSchool of Economics, Nankai University, Tianjin 300071, P.R. China; LIAO PuThis paper studied the effects of crop insurance on agricultural output with an economic growth model. Based on Ramsey-Cass-Koopmans (RCK) model, a basic model of agriculture economic growth was developed. Extending the basic model to incorporate uncertainty and insurance mechanism, a risk model and a risk-insurance model were built to study the influences of risk and crop insurance on agricultural output. Compared with the steady states of the three models, the following results are achieved: (i) agricultural output decreases if we introduce uncertainty into the risk-free model; (ii) crop insurance promotes agriculture economic growth if insurance mechanism is introduced into the risk model; (iii) premium subsidy constantly improves agricultural output. Our contribution is that we studied the effects of crop insurance and premium subsidy from the perspective of economic growth in a dynamic framework, and proved the output promotion of crop insurance theoretically.http://www.sciencedirect.com/science/article/pii/S2095311913606747economic growthagriculture riskcrop insurancepremium subsidy |
| spellingShingle | Jing-feng XU Pu LIAO Crop Insurance, Premium Subsidy and Agricultural Output Journal of Integrative Agriculture economic growth agriculture risk crop insurance premium subsidy |
| title | Crop Insurance, Premium Subsidy and Agricultural Output |
| title_full | Crop Insurance, Premium Subsidy and Agricultural Output |
| title_fullStr | Crop Insurance, Premium Subsidy and Agricultural Output |
| title_full_unstemmed | Crop Insurance, Premium Subsidy and Agricultural Output |
| title_short | Crop Insurance, Premium Subsidy and Agricultural Output |
| title_sort | crop insurance premium subsidy and agricultural output |
| topic | economic growth agriculture risk crop insurance premium subsidy |
| url | http://www.sciencedirect.com/science/article/pii/S2095311913606747 |
| work_keys_str_mv | AT jingfengxu cropinsurancepremiumsubsidyandagriculturaloutput AT puliao cropinsurancepremiumsubsidyandagriculturaloutput |