Modeling Farm‐Level Crop Insurance Demand with Panel Data
利用堪萨斯州小麦农场的面板数据，通过随机效应二项Probit模型分析多重风险作物保险需求，发现市场收益和保险收益的矩对需求有显著影响，需求价格弹性为-0.65，且未发现跨期逆向选择的证据。
Abstract A random‐effects, binomial probit model is applied to data for a panel of Kansas wheat farms to examine Multiple Peril Crop Insurance demand. A theoretical model is developed which suggests inclusion of the moments of both market return and the return to insurance. Empirical results indicate that the first and second moments of both market return and the returns to insurance are significant. The price elasticity of demand is estimated to be −0.65. Preseason weather variables when included in the models were not found to be significant, failing to support the hypothesis of intertemporal adverse selection.