Data from China Europe International Business School Advance Knowledge in Crop Insurance (Does Finance Make Us Less Social?): Agriculture – Crop Insurance

2022 OCT 06 (NewsRx) -- By a News Reporter-Staff News Editor at Agriculture Daily -- Fresh data on Agriculture - Crop Insurance are presented in a new report. According to news originating from Shanghai, People’s Republic of China, by NewsRx correspondents, research stated, “Informal risk sharing within social networks and formal financial contracts both enable households to manage risk. We find that financial contracting reduces participation in social networks.”

Financial support for this research came from Chapman University, China Europe International Business School, Erasmus University.

Our news journalists obtained a quote from the research from China Europe International Business School, “Specifically, increased crop insurance usage decreased local religious adherence and congregation membership in agricultural communities. Our identification utilizes the Federal Crop Insurance Reform Act of 1994 that doubled crop insurance usage nationally within a year, although changes in usage varied across counties. Difference-in-difference and Spatial First Difference tests confirm that households substituted insurance for religiosity.”

According to the news editors, the research concluded: “This substitution was associated with reductions in crop diversification and crop yields, indicating an increase in moral hazard.”

This research has been peer-reviewed.

For more information on this research see: Does Finance Make Us Less Social? Journal of Financial and Quantitative Analysis, 2022. Journal of Financial and Quantitative Analysis can be contacted at: Cambridge Univ Press, 32 Avenue Of The Americas, New York, NY 10013-2473, USA. (Cambridge University Press - www.cambridge.org; Journal of Financial and Quantitative Analysis - http://journals.cambridge.org/action/displayJournal?jid=JFQ)

The news correspondents report that additional information may be obtained from Frank Yu, China Europe International Business School, Shanghai, People’s Republic of China. Additional authors for this research include Henrik Cronqvist and Mitch Warachka.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1017/S0022109022000722. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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