Mutual Insurance, Individual Savings And Lmited Commitment
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A primary justification for government
intervention has been the failure of private
agricultural insurance markets (see, for
example, Appel, Lord, and Harrington,
1999; Hazell, Pomerada, and Valdez, 1986;
Goodwin and Smith, 1995). In a 1922
U.S. Department of Agriculture (USDA)
bulletin, Valgren describes the disastrous
experiences of fire insurance companies
that offered crop insurance in the Dakotas
and Montana in 1917 and the early 1920s.
Severe droughts caused widespread crop
losses in those states. The insurance
companies had not protected themselves
from such large losses and were unable to
indemnify the insured farmers. As Valgren
concluded, “the outcome of this first
attempt to provide a general crop coverage
is much to be regretted.” ...
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Mutual Insurance, Individual Savings And Lmited Commitment
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Mutual Insurance, Individual Savings And Lmited Commitment
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