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Belief in Disaster Relief and the Demand for a Public-Private Insurance Program

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  • Marcel A.P.M. van Asseldonk
  • Miranda P.M. Meuwissen
  • Ruud B.M. Huirne

Abstract

Producers' demand for a public-private crop insurance program in the Netherlands is surveyed. A novel aspect was the inclusion of the producer's belief in disaster relief. Despite emphatic assertions that future governmental involvement would only be directed at a hypothetical insurance program, the participation decision was negatively and significantly associated with the producer's belief about the availability of disaster relief in the future. So, if governments continue to provide (free) ad hoc disaster relief, an important incentive to participate would be severely undermined. However, the conditional decision about the amount was not affected. Copyright 2002, Oxford University Press.

Suggested Citation

  • Marcel A.P.M. van Asseldonk & Miranda P.M. Meuwissen & Ruud B.M. Huirne, 2002. "Belief in Disaster Relief and the Demand for a Public-Private Insurance Program," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 196-207.
  • Handle: RePEc:oup:revage:v:24:y:2002:i:1:p:196-207
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    File URL: http://hdl.handle.net/10.1111/1467-9353.00091
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    References listed on IDEAS

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    1. Garvie, Devon & Keeler, Andrew, 1994. "Incomplete enforcement with endogenous regulatory choice," Journal of Public Economics, Elsevier, pages 141-162.
    2. Parker, Doug, 2000. "Controlling agricultural nonpoint water pollution: costs of implementing the Maryland Water Quality Improvement Act of 1998," Agricultural Economics, Blackwell, vol. 24(1), pages 23-31, December.
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    Cited by:

    1. Sporri, Martina & BarĂ¡th, Lajos & Bokusheva, Raushan & Ferto, Imre, 2012. "The Impact of Crop Insurance on the Economic Performance of Hungarian Cropping Farms," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122525, European Association of Agricultural Economists.
    2. Paul A. Raschky & Reimund Schwarze & Manijeh Schwindt & Ferdinand Zahn, "undated". "Uncertainty of Governmental Relief and the Crowding out of Insurance," Working Papers 2010-03, Faculty of Economics and Statistics, University of Innsbruck.
    3. Paul Raschky & Hannelore Weck-Hannemann, 2007. "Charity hazard - A real hazard to natural disaster insurance," Working Papers 2007-04, Faculty of Economics and Statistics, University of Innsbruck.
    4. M.A.P.M. van Asseldonk & H.B. van der Veen & H.A.B. van der Meulen, 2010. "Retirement planning by Dutch farmers: rationality or randomness?," Agricultural Finance Review, Emerald Group Publishing, vol. 70(3), pages 365-376, November.
    5. Enjolras, Geoffroy & Sentis, P., 2008. "The Main Determinants of Insurance Purchase: An Empirical Study on Crop Insurance Policies in France," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44395, European Association of Agricultural Economists.
    6. Di Falco, Salvatore & Capitanio, Fabian & Adinolfi, Felice, 2011. "Natural Vs Financial Insurance in the Management of Weather Risk Exposure in the Italian Agriculture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114325, European Association of Agricultural Economists.
    7. Heidelbach, Olaf, 2007. "Efficiency of selected risk management instruments: An empirical analysis of risk reduction in Kazakhstani crop production," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 40, number 92323, December.

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