Research on Institutional Economics (Volume 12)

Author: Huang Shaohan, Editor-in-Chief
Publisher:
Publish Date: 2006-09-06
Features: This paper addresses the question of whether agricultural insurance can impact farmers' and national welfare. Building on traditional theoretical research, it employs welfare economics methods to conduct a stratified analysis. Based on traditional theories, it provides an in-depth analysis of how agricultural insurance affects farmers' and national welfare, particularly its impact on crop yields. An empirical study combining data from Shanghai's agricultural insurance reveals that the effect of agricultural insurance on crop yields is not significant. Therefore, its welfare effects are also not as substantial as theoretical analyses suggest, and policy subsidies for agricultural insurance will not lead to substantial welfare gains as the supply curve for crops shifts to the right.