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| Crop Insurance, Premium Subsidy and Agricultural Output |
| XU Jing-feng , LIAO Pu |
1、China Institute for Actuarial Science, Central University of Finance and Economics, Beijing 100081, P.R.China
2、School of Economics, Nankai University, Tianjin 300071, P.R.China |
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摘要 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.
Abstract 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.
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Received: 30 September 2013
Accepted:
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Corresponding Authors:
XU Jing-feng, E-mail: xujf_cufe@126.com; LIAO Pu, E-mail: liaopu0327@sina.com
E-mail: xujf_cufe@126.com;liaopu0327@sina.com
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| About author: * These authors contributed equally to this study. |
Cite this article:
XU Jing-feng , LIAO Pu.
2014.
Crop Insurance, Premium Subsidy and Agricultural Output. Journal of Integrative Agriculture, 13(11): 2537-2545.
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