Miao, Ruiqing; Feng, Hongli; Hennessy, David A. - Agricultural and Applied Economics Association - AAEA - 2011
There have long been concerns that federal crop insurance subsidies may significantly impact land use decisions. It is … well known that classical insurance market information asymmetry problems can lead to a social excess of risky land … because the subsidy is i) proportional to acres planted, and ii) greatest for the most production risky land. Using farm …