This paper studied the effects of crop insurance on agricultural output with an economic growth model. Based on Ramsey-Cass-Koopmans （RCK） model, a basic model of agriculture economic growth was developed. Extending...This paper studied the effects of crop insurance on agricultural output with an economic growth model. Based on Ramsey-Cass-Koopmans （RCK） model, a basic model of agriculture economic growth was developed. Extending the basic model to incorporate uncertainty and insurance mechanism, a risk model and a risk-insurance model were built to study the inlfuences of risk and crop insurance on agricultural output. Compared with the steady states of the three models, the following results are achieved：（i） agricultural output decreases if we introduce uncertainty into the risk-free model;（ii） crop insurance promotes agriculture economic growth if insurance mechanism is introduced into the risk model;（iii） premium subsidy constantly improves agricultural output. Our contribution is that we studied the effects of crop insurance and premium subsidy from the perspective of economic growth in a dynamic framework, and proved the output promotion of crop insurance theoretically.展开更多
文摘This paper studied the effects of crop insurance on agricultural output with an economic growth model. Based on Ramsey-Cass-Koopmans （RCK） model, a basic model of agriculture economic growth was developed. Extending the basic model to incorporate uncertainty and insurance mechanism, a risk model and a risk-insurance model were built to study the inlfuences of risk and crop insurance on agricultural output. Compared with the steady states of the three models, the following results are achieved：（i） agricultural output decreases if we introduce uncertainty into the risk-free model;（ii） crop insurance promotes agriculture economic growth if insurance mechanism is introduced into the risk model;（iii） premium subsidy constantly improves agricultural output. Our contribution is that we studied the effects of crop insurance and premium subsidy from the perspective of economic growth in a dynamic framework, and proved the output promotion of crop insurance theoretically.
