Feng, Hongli; Du, Xiaodong; Hennessy, David A. - Agricultural and Applied Economics Association - AAEA - 2013
premium rate be set at actuarially fair level with the federal government paying the administrative and operational costs … payment. We show that, given actuarially fair premium, a rational farmer will choose the coverage level with the highest … premium subsidy or a higher coverage level. With a large insurance unit level data, we fail to find empirical support for this …