Keith H. Coble

Modeling Farm-Level Crop Insurance Demand with Panel Data

A random-effects, binomial probit model is applied to data for a panel of Kansas wheat farms to examine Multiple Peril Crop Insurance demand. A theoretical model is developed which suggests inclusion of the moments of both market return and the return to insurance. Empirical results indicate that the first and second moments of both market return and the returns to insurance are significant. The price elasticity of demand is estimated to be −0.65. Preseason weather variables when included in the models were not found to be significant, failing to support the hypothesis of intertemporal adverse selection. Copyright 1996, Oxford University Press.

An Expected-Indemnity Approach to the Measurement of Moral Hazard in Crop Insurance

A definition of moral hazard in multiple peril crop insurance is proposed that focuses on expected indemnities rather than input use. Five years of production and insurance data for a panel of Kansas wheat farms is used to empirically test for this type of moral hazard. Results suggest that moral hazard affects multiple peril crop insurance indemnities in poor production years but that no significant moral hazard occurs in years when growing conditions are favorable. Copyright 1997, Oxford University Press.

Survey of U.S. Multiple Peril Crop Insurance Literature Since 1980

Since 1980, the Multiple Peril Crop Insurance (MPCI) program has occupied a prominant role in U.S. farm policy. MPCI coverage offerings have been greatly expanded to try to effectively substitute for other forms of federal crop disaster assistance. In this paper, we survey a substantial body of agricultural economics literature that has examined issues relating to the MPCI program. We give an assessment of research findings along with suggested directions for future research.