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Belief in Disaster Relief and the Demand for a Public‐Private Insurance Program
Author(s) -
van Asseldonk Marcel A.P.M.,
Meuwissen Miranda P.M.,
Huirne Ruud B.M.
Publication year - 2002
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1111/1467-9353.00091
Subject(s) - business , actuarial science , property insurance , casualty insurance , finance , insurance policy
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.