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Insurance, Moral Hazard, and Chemical Use in Agriculture
Abstract
This paper examines how crop insurance affects corn farmers' fertilizer and pesticide use in the U.S. Midwest. Crop insurance might be expected to affect chemical use because of “moral hazard”; insured farmers may undertake riskier production than do uninsured farmers. Results suggest that insurance exerts considerable influence on corn farmers' chemical use decisions. Those purchasing insurance applied significantly more nitrogen per acre (19%), spent more on pesticides (21%), and treated more acreage with both herbicides and insecticides (7% and 63%) than did those not purchasing insurance. These results suggest that both fertilizer and pesticides may be risk‐increasing inputs.
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Citations
Cited by
Index Insurance for Developing Countries
Miranda, M. J., & Farrin, K. (2012) · Applied Economic Perspectives and Policy · doi:10.1093/aepp/pps031 · Cited by 310
Glauber, J. W. (2004) · American Journal of Agricultural Economics · doi:10.1111/j.0002-9092.2004.00663.x · Cited by 293
How does climate change affect food security? Evidence from China
Lee, C.-C., Zeng, M., & Luo, K. (2024) · Environmental Impact Assessment Review · doi:10.1016/j.eiar.2023.107324 · Cited by 269
Ogutu, S. O., Okello, J. J., & Otieno, D. J. (2014) · World Development · doi:10.1016/j.worlddev.2014.06.011 · Cited by 262
Aubert, C., Raineau, Y., & Raynal, M. (2026) · European Review of Agricultural Economics · doi:10.1093/erae/jbaf065
Metadata
- Authors
- Horowitz, J. K., & Lichtenberg, E.
- Venue
- American Journal of Agricultural Economics
- Publisher
- Wiley
- Published
- 1993-11
- Volume
- 75
- Issue
- 4
- Pages
- 926-935
- ISSN
- 0002-9092 (ISSN-L)
- 1467-8276
- OpenAlex
- W2055976128
- Cited by
- 377
- References
- 0
- FWCI
- 5.50
- Type
- journal article
- Language
- en
- Open access
- closed
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How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
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- CoChat. (2026). Citation check: Insurance, Moral Hazard, and Chemical Use in Agriculture. https://app.cochat.ai/papers/10.2307/1243980
- The paper
- Horowitz, J. K., & Lichtenberg, E. (1993). Insurance, Moral Hazard, and Chemical Use in Agriculture. American Journal of Agricultural Economics. https://doi.org/10.2307/1243980
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
