Data on Crop Insurance Reported by Researchers at University of Maryland (Experimental Identification of Asymmetric Information: Evidence On Crop Insurance In the Philippines)

2020 MAY 14 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New research on Agriculture - Crop Insurance is the subject of a report. According to news reporting originating in College Park, Maryland, by NewsRx editors, the research stated, “I study asymmetric information in crop insurance in the Philippines using a two-level randomized field experiment and incentivized preference elicitation.”

Financial supporters for this research include Australian Agency for International Development [AUSAID], National Science Foundation, Sasakawa Fund at the Yale Economic Growth Center, Russell Sage Foundation, Geneva Association for Insurance Economics.

The news reporters obtained a quote from the research from the University of Maryland, “In this first experimental study of moral hazard in non-health insurance, preventable damages double on randomly insured plots among farmers with high trust in the insurance provider. Farmers prefer insurance on plots that are at risk of floods and crop diseases, a sign of classic adverse selection, and plots that are far away from home, a sign of selection on anticipated moral hazard behavior, resulting in 72% higher payouts on preferred plots.”

According to the news reporters, the research concluded: “Overcoming these challenges requires leveraging new technologies.”

For more information on this research see: Experimental Identification of Asymmetric Information: Evidence On Crop Insurance In the Philippines. Journal of Development Economics, 2020;144():. Journal of Development Economics can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Development Economics - http://www.journals.elsevier.com/journal-of-development-economics/)

Our news correspondents report that additional information may be obtained by contacting S. Gunnsteinsson, University of Maryland, College Park, MD 20742, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jdeveco.2019.102414. 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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