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Journal of Agricultural and Resource Economics >
Volume 25, Number 01, July 2000 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/30828
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| Title: | A TWO-STAGE MODEL OF THE DEMAND FOR SPECIALTY CROP INSURANCE |
| Authors: | Richards, Timothy J. |
| Issue Date: | 2000-07 |
| Abstract: | Recent proposals to reform the federal Multiple-Peril Crop Insurance Program for specialty crops raised concerns that a higher cost for catastrophic-level coverage would significantly reduce program participation. This study estimates the demand for three levels of insurance coverage (50%, 65%, 75%) using aggregate data from grape production in 11 California counties from 1986-96. A discrete/continuous econometric model of the choice of coverage level and the amount of insurance finds that the price-elasticity of demand for 50% coverage is elastic, suggesting that premium increases may indeed reduce participation significantly. Such increases may also cause a significant reallocation of growers among coverage levels. |
| URI: | http://purl.umn.edu/30828 |
| Institution/Association: | Journal of Agricultural and Resource Economics>Volume 25, Number 01, July 2000 |
| Total Pages: | 18 |
| Language: | English |
| From Page: | 177 |
| To Page: | 194 |
| Collections: | Volume 25, Number 01, July 2000
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| 25010177.pdf | 1454Kb | PDF | View/Open |
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