Premium subsidies and selection in the federal crop insurance program
研究美国联邦农作物保险计划中保费补贴如何影响不同风险农户的参保选择，发现补贴增加时低风险农户更积极参保，从而降低平均损失率。
Abstract Understanding how subsidies affect the selection of farms with different risk exposure into insurance products is key to evaluating the efficiency of government‐supported insurance programs. We study the US crop insurance program, which is a major federally supported insurance program, to assess the impact of premium subsidies on the riskiness of the insured. By exploiting two waves of policy changes, we find that the average loss per insured liability falls as premium subsidies increase, which implies that crop producers with lower risk are more responsive to the price of insurance.