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• W4384285149 endingPage "102505" @default.
• W4384285149 startingPage "102505" @default.
• W4384285149 abstract "Premium subsidies are a common policy tool to promote crop insurance participation in many countries. However, the relationship between subsidies and demand is not entirely obvious given the variation in the use of subsidies and crop insurance participation within the international crop insurance landscape. Focusing on the U.S. Federal Crop Insurance Program (FCIP) demand is modeled as a system of equations representing decisions at the intensive [coverage level] and extensive [net insured acres] margins. The model makes use of an identification strategy that leverages exogenous variation in government-set pricing policy to address potential sources of endogeneity. Applying the model to over one million insurance pool level FCIP observations spanning two decades (2001–2022) suggest an inelastic response at both extensive and intensive margins to changes in producer-paid premium rates with the response to premium rates becoming increasingly more elastic as subsidies decrease. These estimated elasticities are on the low end compared to previous literature, however, significant heterogeneity across commodity, production practices, policy type, and location are observed suggesting subsets of producers are likely to respond to changes in the cost of insurance in different ways." @default.
• W4384285149 created "2023-07-15" @default.
• W4384285149 creator A5059084154 @default.
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• W4384285149 date "2023-08-01" @default.
• W4384285149 modified "2023-09-25" @default.
• W4384285149 title "The crop insurance demand response to premium subsidies: Evidence from U.S. Agriculture" @default.
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• W4384285149 doi "https://doi.org/10.1016/j.foodpol.2023.102505" @default.
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