Input Demand under Yield and Revenue Insurance
通过估计玉米产量的条件分布，检验保险是否增加最优施肥量。结果表明，在所有施氮水平和合理风险厌恶程度下，氮肥与保险是替代品，购买保险的农户可能减少氮肥施用。
Abstract Previous studies disagree on the effects of insurance on fertilizer application rates. The effect of increased fertilizer on the probability of low yields primarily determines whether fertilizer and insurance are substitutes or complements. We estimate conditional distributions of corn yields to determine if the technical relationship between yields and fertilizer supports the hypothesis that insurance increases optimal application rates. Our results indicate no support for this hypothesis. At all nitrogen fertilizer rates and reasonable levels of risk aversion, nitrogen fertilizer and insurance are substitutes, suggesting that those who purchase insurance are likely to decrease nitrogen fertilizer applications.