The impact of crop insurance participation on farmers' use of marketing contracts
Li, Li
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https://hdl.handle.net/2142/45571
Description
Title
The impact of crop insurance participation on farmers' use of marketing contracts
Author(s)
Li, Li
Issue Date
2013-08-22T16:48:11Z
Director of Research (if dissertation) or Advisor (if thesis)
Kirwan, Barrett E.
Department of Study
Agr & Consumer Economics
Discipline
Agricultural & Applied Econ
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
M.S.
Degree Level
Thesis
Keyword(s)
Marketing Contract
Crop Insurance
Impact
Endogeneity
Instrument
Abstract
This thesis investigates the impact of crop insurance participation on farmers’ use of marketing contracts. Both the decisions of adopting a marketing contract and the quantity placed under contract are examined. A preliminary estimation is first performed using the OLS approach. To address the potential endogeneity problem of crop insurance participation, an instrumental variable is introduced and a 2SLS approach is employed to conduct a farm-level analysis. Results suggest a negative impact of crop insurance participation on marketing contract adoption, while the fraction of production contracted is positively affected by the participation in crop insurance.
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