Advantageous Selection in Crop Insurance: Theory and Evidence
扩展了多维不对称信息模型，证明农作物保险中存在有利选择，并利用菲律宾数据展示了如何从计量经济学角度识别其来源。
Abstract We extend the recently proposed multi‐dimensional asymmetric information model to show that advantageous selection could be present in crop insurance with two types of coverage: (i) multiple perils (e.g. a multi‐peril, ‘all risk’ policy), and (ii) a specific named peril (or set of perils). Our theoretical model suggests that certain characteristics of an insured farmer (or farm) under both types of coverage can be sources of advantageous selection. Farmers who advantageously select are more likely to purchase insurance coverage and less likely to realise a loss. A supplementary empirical analysis, based on data from the Philippine crop insurance market, illustrates how sources of advantageous selection can be identified econometrically.