Belief in Disaster Relief and the Demand for a Public–Private Insurance Program |
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Authors: | Marcel APM van Asseldonk Miranda PM Meuwissen & Ruud BM Huirne |
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Institution: | Institute for Risk Management in Agriculture,;Farm Management, Department of Social Sciences, Wageningen University, The Netherlands |
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Abstract: | Producers' demand for a public–private crop insurance program in the Netherlands is surveyed. A novel aspect was the inclusion of the producer's belief in disaster relief. Despite emphatic assertions that future governmental involvement would only be directed at a hypothetical insurance program, the participation decision was negatively and significantly associated with the producer's belief about the availability of disaster relief in the future. So, if governments continue to provide (free) ad hoc disaster relief, an important incentive to participate would be severely undermined. However, the conditional decision about the amount was not affected. |
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