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Agricultural Economics

University of Arkansas, Fayetteville

2016

Indonesia

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The Impact Of Crop Insurance On Indonesian Rice Production, Zaura Fadhliani Aug 2016

The Impact Of Crop Insurance On Indonesian Rice Production, Zaura Fadhliani

Graduate Theses and Dissertations

This study builds a theoretical model of the yield-based MPCI crop insurance policy for a risk averse rice farmer in Indonesia and presents the comparative statics analysis of policy variables on yield through the coupling, wealth, and insurance effects. Moreover, Using yield data from 1979 to 2014 for the Tuban Regency, this study applies numerical optimization to the model and simulates the effects of different policies on input use, certainty equivalents, indemnity payment, and premiums. The theoretical analysis shows that no coupling effect exists for change in the coverage level, while a coupling effect exists for change in the subsidy …