IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v10y2022i21p3935-d951112.html
   My bibliography  Save this article

An Estimated Analysis of Willingness to Wait Time to Pay Rice Agricultural Insurance Premiums Using Cox’s Proportional Hazards Model

Author

Listed:
  • Yuyun Hidayat

    (Department of Statistics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumendang 45363, Indonesia)

  • Sukono

    (Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Betty Subartini

    (Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Nida Khairunnisa

    (Undergraduate Program in Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Aceng Sambas

    (Department of Mechanical Engineering, Universitas Muhammadiyah Tasikmalaya, Tasikmalaya 46196, Indonesia)

  • Titi Purwandari

    (Department of Statistics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumendang 45363, Indonesia)

Abstract

In this paper, we determined the factors that affect the waiting time of rice farmers’ willingness to pay the premium for the Rice Farming Insurance Program (RFIP) using survival analysis. The survival analysis method was carried out using the Cox proportional hazard model with the Efron approach. The case study in this research is rice farmers in Cibungur Village, Parungponteng District, Tasikmalaya Regency. The results of the analysis show that the predictor variables that are significant to the waiting time of rice farmers’ willingness to pay the insurance premium for RFIP are their last education, other occupations, rice production, and farming costs. The results of the research are expected to produce additional information for the government and implementers of rice farming insurance regarding the condition of farmers in the field, so that it can be improved in the future.

Suggested Citation

  • Yuyun Hidayat & Sukono & Betty Subartini & Nida Khairunnisa & Aceng Sambas & Titi Purwandari, 2022. "An Estimated Analysis of Willingness to Wait Time to Pay Rice Agricultural Insurance Premiums Using Cox’s Proportional Hazards Model," Mathematics, MDPI, vol. 10(21), pages 1-16, October.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:21:p:3935-:d:951112
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/10/21/3935/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/10/21/3935/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Youngjune Kim & Jisang Yu & Dustin L Pendell, 2020. "Effects of crop insurance on farm disinvestment and exit decisions [Effects of differing farm policies on farm structure and dynamics]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(1), pages 324-347.
    2. Zheng, Rui & Najafi, Seyedvahid & Zhang, Yingzhi, 2022. "A recursive method for the health assessment of systems using the proportional hazards model," Reliability Engineering and System Safety, Elsevier, vol. 221(C).
    3. Gazali Issahaku & Awudu Abdulai, 2020. "Can Farm Households Improve Food and Nutrition Security through Adoption of Climate‐smart Practices? Empirical Evidence from Northern Ghana," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(3), pages 559-579, September.
    4. Rafia Afroz & Rulia Akhtar & Puteri Farhana, 2017. "Willingness to Pay for Crop Insurance to Adapt Flood Risk by Malaysian Farmers: An Empirical Investigation of Kedah," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 1-9.
    5. Suryanto & Evi Gravitiani & Akhmad Daerobi & Fitri Susilowati, 2020. "Crop insurance as farmers adaptation for climate change risk on agriculture in Surakarta residency-Indonesia," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 13(2), pages 251-266.
    6. Ji Guo & Jiajia Jin & Yinshan Tang & Xianhua Wu, 2019. "Design of Temperature Insurance Index and Risk Zonation for Single-Season Rice in Response to High-Temperature and Low-Temperature Damage: A Case Study of Jiangsu Province, China," IJERPH, MDPI, vol. 16(7), pages 1-13, April.
    7. Zaura Fadhliani & Jeff Luckstead & Eric J. Wailes, 2019. "The impacts of multiperil crop insurance on Indonesian rice farmers and production," Agricultural Economics, International Association of Agricultural Economists, vol. 50(1), pages 15-26, January.
    8. Anirban Basu & Willard G. Manning & John Mullahy, 2004. "Comparing alternative models: log vs Cox proportional hazard?," Health Economics, John Wiley & Sons, Ltd., vol. 13(8), pages 749-765, August.
    9. Hong Fu & Yuehua Zhang & Yinuo An & Li Zhou & Yanling Peng & Rong Kong & Calum G. Turvey, 2022. "Subjective and objective risk perceptions and the willingness to pay for agricultural insurance: evidence from an in-the-field choice experiment in rural China," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 47(1), pages 98-121, March.
    10. Md Monjurul Islam & Tofael Ahamed & Ryozo Noguchi, 2018. "Land Suitability and Insurance Premiums: A GIS-based Multicriteria Analysis Approach for Sustainable Rice Production," Sustainability, MDPI, vol. 10(6), pages 1-28, May.
    11. Dadang Jainal Mutaqin & Koichi Usami, 2019. "Smallholder Farmers’ Willingness to Pay for Agricultural Production Cost Insurance in Rural West Java, Indonesia: A Contingent Valuation Method (CVM) Approach," Risks, MDPI, vol. 7(2), pages 1-18, June.
    12. Jinzheng Ren & H. Holly Wang, 2016. "Rural Homeowners’ Willingness to Buy Flood Insurance," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(5), pages 1156-1166, May.
    13. Pengfei Liu & Lingling Hou & Dongqing Li & Shi Min & Yueying Mu, 2021. "Determinants of Livestock Insurance Demand: Experimental Evidence from Chinese Herders," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 430-451, June.
    14. Geoffroy Enjolras & Patrick Sentis, 2011. "Crop insurance policies and purchases in France," Agricultural Economics, International Association of Agricultural Economists, vol. 42(4), pages 475-486, July.
    15. Yung-Chia Chang & Kuei-Hu Chang & Heng-Hsuan Chu & Lee-Ing Tong, 2016. "Establishing decision tree-based short-term default credit risk assessment models," Communications in Statistics - Theory and Methods, Taylor & Francis Journals, vol. 45(23), pages 6803-6815, December.
    16. Issahaku, Gazali & Abdulai, Awudu, 2020. "Sustainable Land Management Practices and Technical and Environmental Efficiency among Smallholder Farmers in Ghana," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(1), pages 96-116, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mingyu Hu & Fujin Yi & Hong Zhou & Feier Yan, 2024. "The More the Better? Reconsidering the Welfare Effect of Crop Insurance Premium Subsidy," Agriculture, MDPI, vol. 14(11), pages 1-19, November.
    2. Md. Monirul Islam & Shusuke Matsushita & Ryozo Noguchi & Tofael Ahamed, 2022. "A damage-based crop insurance system for flash flooding: a satellite remote sensing and econometric approach," Asia-Pacific Journal of Regional Science, Springer, vol. 6(1), pages 47-89, February.
    3. Naohiro Manago & Chiharu Hongo & Yuki Sofue & Gunardi Sigit & Budi Utoyo, 2020. "Transplanting Date Estimation Using Sentinel-1 Satellite Data for Paddy Rice Damage Assessment in Indonesia," Agriculture, MDPI, vol. 10(12), pages 1-18, December.
    4. Kalfin & Sukono & Sudradjat Supian & Mustafa Mamat, 2022. "Insurance as an Alternative for Sustainable Economic Recovery after Natural Disasters: A Systematic Literature Review," Sustainability, MDPI, vol. 14(7), pages 1-18, April.
    5. Dragos, Cristian Mihai & Dragos, Simona Laura & Mare, Codruta & Muresan, Gabriela Mihaela & Purcel, Alexandra-Anca, 2023. "Does risk assessment and specific knowledge impact crop insurance underwriting? Evidence from Romanian farmers," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 343-358.
    6. Noémi Kreif & Richard Grieve & M. Zia Sadique, 2013. "Statistical Methods For Cost‐Effectiveness Analyses That Use Observational Data: A Critical Appraisal Tool And Review Of Current Practice," Health Economics, John Wiley & Sons, Ltd., vol. 22(4), pages 486-500, April.
    7. Joseph F. Levy & Marjorie A. Rosenberg, 2019. "A Latent Class Approach to Modeling Trajectories of Health Care Cost in Pediatric Cystic Fibrosis," Medical Decision Making, , vol. 39(5), pages 593-604, July.
    8. Fabio Gaetano Santeramo, 2018. "Imperfect information and participation in insurance markets: evidence from Italy," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 78(2), pages 183-194, February.
    9. Magali Aubert & Geoffroy Enjolras, 2015. "Are short food supply chains a solution for farms facing financial difficulties?," Post-Print hal-02800273, HAL.
    10. Gaskin, Darrell J. & Zare, Hossein & Delarmente, Benjo A., 2021. "Geographic disparities in COVID-19 infections and deaths: The role of transportation," Transport Policy, Elsevier, vol. 102(C), pages 35-46.
    11. Rocha, Jr., Adauto B. & Fulginiti, Lilyan E. & Perrin, Richard K. & Walters, Cory G., 2022. "What is the value of crop insurance for Nebraskan farmers?," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322529, Agricultural and Applied Economics Association.
    12. Greta Lozano-Ortega & Carol R. Schermer & David R. Walker & Shelagh M. Szabo & Basia Rogula & Alison M. Deighton & Katherine L. Gooch & Noll L. Campbell, 2021. "Fall/Fracture-Related Healthcare Costs and Their Association with Cumulative Anticholinergic Burden in People with Overactive Bladder," PharmacoEconomics - Open, Springer, vol. 5(1), pages 45-55, March.
    13. Jones, A.M, 2010. "Models For Health Care," Health, Econometrics and Data Group (HEDG) Working Papers 10/01, HEDG, c/o Department of Economics, University of York.
    14. Gómez-Limón, José A. & Granado-Díaz, Rubén, 2023. "Assessing the demand for hydrological drought insurance in irrigated agriculture," Agricultural Water Management, Elsevier, vol. 276(C).
    15. Zheng, Hongyun & Ma, Wanglin & Wang, Fang & Li, Gucheng, 2021. "Does internet use improve technical efficiency of banana production in China? Evidence from a selectivity-corrected analysis," Food Policy, Elsevier, vol. 102(C).
    16. Vibeke Müller & Ulf Gerdtham & Ann Alriksson‐Schmidt & Johan Jarl, 2022. "Parental decisions to divorce and have additional children among families with children with cerebral palsy: Evidence from Swedish longitudinal and administrative data," Health Economics, John Wiley & Sons, Ltd., vol. 31(10), pages 2170-2186, October.
    17. Mandy Ryan & Emmanouil Mentzakis & Catriona Matheson & Christine Bond, 2020. "Survey modes comparison in contingent valuation: Internet panels and mail surveys," Health Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 234-242, February.
    18. F. G. Santeramo & B. K. Goodwin & F. Adinolfi & F. Capitanio, 2016. "Farmer Participation, Entry and Exit Decisions in the Italian Crop Insurance Programme," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 639-657, September.
    19. Tao Ye & Yangbin Liu & Jiwei Wang & Ming Wang & Peijun Shi, 2017. "Farmers’ crop insurance perception and participation decisions: empirical evidence from Hunan, China," Journal of Risk Research, Taylor & Francis Journals, vol. 20(5), pages 664-677, May.
    20. Tatiana Dilla & Amparo Valladares & Claudia Nicolay & Javier Salvador & Jesús Reviriego & María Costi, 2012. "Healthcare Costs Associated with Change in Body Mass Index in Patients with Type 2 Diabetes Mellitus in Spain," Applied Health Economics and Health Policy, Springer, vol. 10(6), pages 417-430, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:10:y:2022:i:21:p:3935-:d:951112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.