000236151 001__ 236151 000236151 005__ 20210819131448.0 000236151 0247_ $$2doi$$a10.22004/ag.econ.236151 000236151 037__ $$a333-2016-14780 000236151 041__ $$aeng 000236151 245__ $$aEstimation of Insurance Deductible Demand under Endogenous Premium Rates 000236151 260__ $$c2016 000236151 269__ $$a2016 000236151 336__ $$aConference Paper/ Presentation 000236151 490__ $$a8584 000236151 520__ $$aGovernment subsidized insurance is ubiquitous, yet estimation of demand in such markets remains challenging. Premium charged for a given deductible is determined by actuarial construction, thus observed choice-pairs are endogenous leading to biased estimation under standard econometric approaches. A theoretical model and simulation study are developed, and a new identification strategy proposed. An empirical application using Federal Crop Insurance Program--a $100 billion/year program--data reveals that demand is quite elastic after accounting for this endogeneity. Mistreatment of such endogeneity is likely partly responsible for pervasive faulty findings of inelastic insurance demand in related applications. Policy implications are discussed. 000236151 546__ $$aEnglish 000236151 650__ $$aAgribusiness 000236151 650__ $$aAgricultural and Food Policy 000236151 650__ $$aAgricultural Finance 000236151 6531_ $$acrop insurance 000236151 6531_ $$arisk management 000236151 700__ $$aWoodard, Joshua 000236151 773__ $$d2016 000236151 8564_ $$9e12b595c-5611-4f13-968d-f3ed60aecd6d$$s259269$$uhttps://ageconsearch.umn.edu/record/236151/files/EndogRateCurveDemand.pdf 000236151 887__ $$ahttp://purl.umn.edu/236151 000236151 909CO $$ooai:ageconsearch.umn.edu:236151$$pGLOBAL_SET 000236151 912__ $$nSubmitted by Joshua Woodard (woodardjoshua@gmail.com) on 2016-05-26T03:47:21Z No. of bitstreams: 1 EndogRateCurveDemand.pdf: 259269 bytes, checksum: e0d7ba68a4678b4f3123960b3f9921d9 (MD5) 000236151 912__ $$nMade available in DSpace on 2016-05-26T03:47:21Z (GMT). No. of bitstreams: 1 EndogRateCurveDemand.pdf: 259269 bytes, checksum: e0d7ba68a4678b4f3123960b3f9921d9 (MD5) Previous issue date: 2016 000236151 913__ $$aLicense granted by Joshua Woodard (woodardjoshua@gmail.com) on 2016-05-26T03:42:12Z (GMT): <p class="ds-paragraph"> By depositing this Content ("Content") in AgEcon Search, I agree that I am solely responsible for any consequences of uploading this Content to AgEcon Search and making it publicly available, and I represent and warrant that: I am either the sole creator and the owner of the copyrights and all other rights in the Content; or, without obtaining another’s permission, I have the right to deposit the Content in an archive such as AgEcon Search. To the extent that any portions of the Content are not my own creation, they are used with the copyright holder’s express permission or as permitted by law. Additionally, the Content does not infringe the copyrights or other intellectual property rights of another, nor does the Content violate any laws or another’s rights of privacy or publicity. The Content contains no restricted, private, confidential, or otherwise protected data or information that should not be publicly shared. I understand that AgEcon Search will do its best to provide perpetual access to my Content. In order to support these efforts, I grant the Regents of the University of Minnesota ("University"), through AgEcon Search, the following non-exclusive, irrevocable, royalty-free, world-wide rights and licenses: to access, reproduce, distribute and publicly display the Content, in whole or in part, in order to secure, preserve and make it publicly available, and to make derivative works based upon the Content in order to migrate the Content to other media or formats, or to preserve its public access. These terms do not transfer ownership of the copyright(s) in the Content. These terms only grant to the University the limited license outlined above. </p> 000236151 980__ $$a333 000236151 982__ $$gAgricultural and Applied Economics Association>2016 Annual Meeting, July 31-August 2, Boston, Massachusetts