Investigators at University of Kiel Discuss Findings in Crop Insurance (Risk, Ambiguity and Willingness To Participate In Crop Insurance Programs: Evidence From a Field Experiment*)

2021 JUL 21 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on Agriculture - Crop Insurance. According to news reporting from Kiel, Germany, by NewsRx journalists, research stated, “This paper analyses smallholder farmers’ willingness to participate in crop insurance programs, using recent data from cocoa farmers in Ghana. Given the significance of output uncertainty and imperfect capital and insurance markets, we develop a theoretical framework to analyse how risk and ambiguity aversion, and liquidity constraints influence farmers’ crop insurance participation decisions.”

Financial support for this research came from German Research Foundation (DFG).

The news correspondents obtained a quote from the research from the University of Kiel, “We employ field experiments to elicit farmers’ ambiguity and risk aversion, the stated preference approach to obtain information on farmers’ willingness to participate in crop insurance programs, and a discrete choice model to examine the factors that influence their participation decisions. We find that risk preferences, ambiguity aversion, and liquidity constraints influence farmers’ willingness to participate in crop insurance programs.”

According to the news reporters, the research concluded: “The results also reveal that the probability of participating in crop insurance programs is positively influenced by wealth, trust and education of the farmers.”

This research has been peer-reviewed.

For more information on this research see: Risk, Ambiguity and Willingness To Participate In Crop Insurance Programs: Evidence From a Field Experiment*. Australian Journal of Agricultural and Resource Economics, 2021. Australian Journal of Agricultural and Resource Economics can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Australian Journal of Agricultural and Resource Economics - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-8489)

Our news journalists report that additional information may be obtained by contacting Williams Ali, University of Kiel, Inst Food Econ & Consumpt Studies, Kiel, Germany. Additional authors for this research include Awudu Abdulai, Renan Goetz and Victor Owusu.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/1467-8489.12434. 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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