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Assessment Of Factors Influencing Farm Insurance In Bulgaria Through Probability Statistical Methods

Author

Listed:
  • Dimitre NIKOLOV

    (Institute of Agricultural Economics, Sofia, Bulgaria)

  • Minka CHOPEVA

    (Institute of Agricultural Economics, Sofia, Bulgaria)

Abstract

The aim of the report is to explain the impact of key factors on farm insurance level in the context of risk management. The presented results were obtained from a survey on 300 farmers within the project “Risk Management in Agriculture” in 2011–2012, carried out by a research team from IAE. The methods used are probabilistic modelling, probit and logistical statistical modelling in particular. Currently, farmers’ interest in insurances as a modality to cope with natural hazards is at a low level. The greatest chance for insurance has been found in the young farmers; those who receive a high enough amount of EU subsidies and manage utilized agricultural land areas larger than 10 ha. It is necessary to build a new insurance system in agriculture, where the risk is shared between farmers, insurance companies and the state.

Suggested Citation

  • Dimitre NIKOLOV & Minka CHOPEVA, 2016. "Assessment Of Factors Influencing Farm Insurance In Bulgaria Through Probability Statistical Methods," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 13(1), pages 3-12.
    • Handle: RePEc:iag:reviea:v:13:y:2016:i:1:p:3-12
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    insurance probability; farmers; probit models; CAP subsidies.;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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