Does agricultural insurance help farmers escape the poverty trap? Research based on multiple equilibrium models
| Autor: | Pu Liao, Qingquan Fan, Xianhua Zhou |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
Labour economics Multiple equilibrium Poverty business.industry 050204 development studies 05 social sciences Subsidy General Business Management and Accounting Poverty trap Agriculture Accounting Capital (economics) 0502 economics and business Research based Economics 050207 economics business Finance Risk management |
| Zdroj: | The Geneva Papers on Risk and Insurance - Issues and Practice. 45:203-223 |
| ISSN: | 1468-0440 1018-5895 |
| DOI: | 10.1057/s41288-019-00150-w |
| Popis: | This paper considers a risk poverty trap model in which technology adoption depends on the individual’s capital level. Agricultural insurance and premium subsidies are then introduced to analyse poverty alleviation resulting from agricultural insurance. For individuals with capital above a threshold, insurance can be helpful, since it lets them stay above the threshold. Agricultural insurance does not help peasants escape deep poverty, because premiums keep them below the threshold. Moreover, premium subsidies would strengthen the poverty reduction resulting from insurance, as the increased income and the risk elimination would move some peasants above the critical threshold. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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