Researcher at Nanjing Forestry University Releases New Study Findings on Risk Management (Risk Management Effects of Insurance Purchase and Organization Participation: Which Is More Effective?): Risk Management

2023 OCT 12 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Research findings on risk management are discussed in a new report. According to news originating from Nanjing, People’s Republic of China, by NewsRx editors, the research stated, “Insurance purchase and organization participation in risk management is of great practical significance for stabilizing agricultural production and household income.”

Financial supporters for this research include National Natural Science Foundation of China.

The news correspondents obtained a quote from the research from Nanjing Forestry University: “The aims of this study were to analyze farm households’ choices of insurance purchase and organization participation, and their effects on crop revenue and its higher-order moments using the multinomial switching endogenous regression (MESR) model. The results showed that the adoption of insurance and organization was significantly affected by household head characteristics, farm household characteristics, and cropland attributes. Insurance purchase, organization participation, and their joint adoption contributed to the increase in crop revenue and decrease in crop revenue variance, and the benefits were larger when adopting two risk management tools in combination.”

According to the news reporters, the research concluded: “When skewness was taken into account in risk management analysis, insurance purchase, organization participation, and their joint adoption resulted in a reduction in the probability of crop failure, of which, participating in organizations was the most effective. Efforts should be put forth to improve the functioning and effectiveness of agricultural insurance and organization to promote the adoption of risk management tools.”

For more information on this research see: Risk Management Effects of Insurance Purchase and Organization Participation: Which Is More Effective?. Agriculture, 2023,13(10). (Agriculture - http://www.mdpi.com/journal/agriculture). The publisher for Agriculture is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/agriculture13101927.

Our news editors report that more information may be obtained by contacting Yanyuan Zhang, College of Economics and Management, Nanjing Forestry University, Nanjing 210037, People’s Republic of China. Additional authors for this research include Xintong Wu.

ORCID is an identifier for authors and includes bibliographic information. The following is ORCID information for the author of this research: Yanyuan Zhang (http://orcid.org/0000-0002-3969-4324).

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