Revisiting the demand of agricultural insurance: the case of Spain

Garrido Colmenero, Alberto and Zilberman, David (2007). Revisiting the demand of agricultural insurance: the case of Spain. "Agricultural Finance Review" ; pp. 43-66. ISSN 0002-1466.

Description

Title: Revisiting the demand of agricultural insurance: the case of Spain
Author/s:
  • Garrido Colmenero, Alberto
  • Zilberman, David
Item Type: Article
Título de Revista/Publicación: Agricultural Finance Review
Date: July 2007
ISSN: 0002-1466
Subjects:
Freetext Keywords: Agricultural insurance, insurance demand models, Spain
Faculty: E.T.S.I. Agrónomos (UPM) [antigua denominación]
Department: Economía y Ciencias Sociales Agrarias [hasta 2014]
Creative Commons Licenses: Recognition - No derivative works - Non commercial

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Abstract

We use the actual insurance records of 52,300 farmers and 11 years to estimate two sets of insurance demands. We define measures of insurance’s expected returns, variance and third moment, based on observed insurance data, and infer the expected returns for those farmers that have never had an indemnity. We estimate several probit models and count models for the insuring vs non-insuring strategies, in which the economic returns of insurance and its two measures of dispersion enter as explanatory variables. Results show that farmers’ insurance strategies are largely explained by their actual insurance experience as captured by these three variables. Individuals with loss rations greater than 1 do not show more responsiveness that those facing more balanced premium charges. Results show that adverse selection may not be a major source of inefficiency in the Spanish insurance system.

More information

Item ID: 2131
DC Identifier: http://oa.upm.es/2131/
OAI Identifier: oai:oa.upm.es:2131
Official URL: http://purl.umn.edu/9266
Deposited by: Memoria Investigacion
Deposited on: 28 Apr 2010 11:52
Last Modified: 20 Apr 2016 11:54
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