Research from Guizhou University of Commerce Broadens Understanding of Agricultural Insurance (Refining the Rent Dissipation Model in Land Use: Application to Agricultural Insurance in China): Agriculture – Agricultural Insurance

2023 FEB 22 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Researchers detail new data in agricultural insurance. According to news originating from Guiyang, People’s Republic of China, by NewsRx correspondents, research stated, “Despite apparent efficiency concerns, the use of agricultural insurance as a policy tool has surged in rural China.”

Financial supporters for this research include Youth Project of China Social Science Foundation.

Our news editors obtained a quote from the research from Guizhou University of Commerce: “Its use offers a natural experiment to assess both economic theory of property rights and agricultural policy effectiveness, and to revisit the rent dissipation model that was originally developed to explain the role of property rights in unsustainable fisheries harvest decisions. We focus on evidence of resource overpricing behavior in the context of subsidized agricultural insurance, including evidence of a theoretically-expected increasing rent pattern.”

According to the news editors, the research concluded: “Our results reinforce the importance of transactions costs as a driver of economic inefficiency and highlight the role of social costs as an important factor to explicitly consider when designing agricultural policy. In particular, when employing the formal policy mechanism of rural agricultural insurance, we suggest that informal risk-bearing arrangements can be leveraged to reduce social costs behind apparent overpricing behavior and increase land users’ welfare consistent with intended policy goals.”

For more information on this research see: Refining the Rent Dissipation Model in Land Use: Application to Agricultural Insurance in China. Land, 2023,12(2). (Land - http://www.mdpi.com/journal/land). The publisher for Land is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/land12020278.

Our news journalists report that additional information may be obtained by contacting Chao Hu, School of Economics and Finance, Guizhou University of Commerce, Guiyang 550014, People’s Republic of China. Additional authors for this research include Damian C. Adams, Huachao Feng, Jing Cheng.

ORCID is an identifier for authors and includes bibliographic information. The following is ORCID information for the author of this research: Damian C. Adams (http://orcid.org/0000-0002-5858-0015).

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