Research in Institutional Economics: Issue 12

Author: Huang Shaosan
Publisher:
Publish Date: 2006-07-01
Features: This paper addresses the question of whether agricultural insurance can impact farmers' and national welfare, based on traditional theoretical research and employing welfare economics methods for a stratified analysis. It provides an in-depth analysis of how traditional theories suggest agricultural insurance affects farmers' and national welfare, particularly its impact on crop yields. An empirical study combining data from Shanghai's agricultural insurance found that the effect of agricultural insurance on yields is not significant, and thus its welfare effects are not as large as those analyzed theoretically. Additionally, policy subsidies for agricultural insurance would not lead to substantial welfare gains as the supply curve for crops shifts to the right.