Adoption of crop insurance in Ghana: an application of the complementary log-log truncated Poisson double-hurdle model

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kwame Asiam Addey ◽  
John Baptist D. Jatoe ◽  
George Tsey-Mensah Kwadzo
Keyword(s):  
Crop Insurance ◽  
Hurdle Model ◽  
Content Type ◽  
Double Hurdle Model ◽  
Rice Farmers ◽  
Normal Regression ◽  
Insurance Programme ◽  
Truncated Normal ◽  
Double Hurdle ◽  
Insurance Decisions

PurposeThe aim of this paper is to identify the factors that influence rice farmers' decisions to adopt crop insurance and premium payments (willingness to pay [WTP] amounts). The paper also demonstrates the usefulness of the complementary log-log (cloglog) truncated Poisson double-hurdle model as an alternative hurdle model.Design/methodology/approachThe study first investigated the nature of the dependent variable, which had non-normal residuals and was overdispersed. The probit truncated normal regression double-hurdle model was tried but it failed the normality and homoscedasticity tests; hence, the cloglog truncated Poisson double-hurdle model was employed in the study.FindingsAn estimated 61% of respondents would purchase crop insurance, despite farmers not having prior experience with this product. Amongst others, the factors that influence insurance adoption amongst rice farmers are the share of rice in total income, reliability perception of crop insurance schemes and the probability of failure to achieve target yields. The latter helps the authors to address adverse selection, a central issue to the viability of such an insurance programme. The determinants of farmers' WTP are also identified.Research limitations/implicationsSampling was limited to farmers using irrigation and living in one region of Ghana, which may limit the study’s wider applicability.Originality/valueAs far as the authors are aware, this study is the first to select the appropriate hurdle model based on established properties of the dependent variable on this topic – crop insurance decisions.

Determinants of pork demand by income class in urban western China

2014 ◽  
Vol 6 (3) ◽  
pp. 452-469 ◽  
Author(s):  
Jingjing Wang ◽  
Yongfu Chen ◽  
Zhihao Zheng ◽  
Wei Si
Keyword(s):  
Price Elasticity ◽  
Income Elasticity ◽  
High Income ◽  
Western China ◽  
Hurdle Model ◽  
Middle Income ◽  
Content Type ◽  
Double Hurdle Model ◽  
Double Hurdle ◽  
Pork Consumption

Purpose – The purpose of this paper is to investigate the determinants of pork consumption in urban western China and the different consumption patterns across income strata with respect to income elasticity and price elasticity of demand. Design/methodology/approach – The double-hurdle model is fit to the household data of Sichuan and Xinjiang provinces which is from the National Bureau of Statistics urban household surveys. Findings – The paper finds that consumers’ purchasing decisions regarding pork are related to both non-economic and economic factors. The results also indicate large differences among the determinants for decision of how much pork to buy across the three income strata. Low-income households have higher income elasticity than middle-income and high-income households. High-income and middle-income households’ level of pork consumption is more sensitive to pork price. High-income households have greater cross-price elasticity. Originality/value – In the previous studies, the non-economic determinants of pork consumption have not been addressed, and neither does the issue of difference pork purchasing behavior across income strata for urban households in western China. So this study uses the double-hurdle model to investigate the determinants of pork consumption in urban western China.

The determinants of mutton consumption-at-home in urban China using an IHS double-hurdle model

2018 ◽  
Vol 120 (5) ◽  
pp. 952-968 ◽  
Author(s):  
Yongfu Chen ◽  
Wenbo Zhu ◽  
Ziyuan Chen
Keyword(s):  
Minority Group ◽  
Urban China ◽  
Hurdle Model ◽  
Minority Ethnic Group ◽  
National Bureau ◽  
Content Type ◽  
Urban Households ◽  
Double Hurdle Model ◽  
Double Hurdle ◽  
At Home

Purpose China is not only the biggest mutton consumer, but also the top mutton importer in the world. China’s urban households are becoming the key driving force behind a surge in mutton consumption. Therefore, the purpose of this paper is to investigate the determinants of mutton demand in urban China. Design/methodology/approach Based on a sample of 32,910 urban households across six provinces and autonomous regions, an inverse hyperbolic sine (IHS) double-hurdle model is estimated, by maximum likelihood estimation, to reveal the determinants of mutton consumption-at-home. Findings The empirical results indicate that, first, household income has a positive effect on mutton consumption, and higher income households have a higher income elasticity; second, wet weather increases probability, but reduces conditional level and unconditional level; finally, minority group households consume more mutton than Han group households. Practical implications It is necessary for policymakers to develop a long-term outlook in relation to the increase of China’s mutton appetite and to shift from a domestic perspective to a global one and develop diversified import strategies. Furthermore, policymakers require to make a practicable emergency preplan for tackling short-term agglomeration of demand for mutton, attributed to festivals, and religious events of a minority ethnic group. Originality/value This is a major work based on a large sample of 32,910 urban households conducted by the National Bureau of Statistics of China. This paper uses an IHS double-hurdle model to quantify the determinants of mutton consumption; it sheds light on the climatic, regional, and ethnic characteristics of mutton consumption in urban China.

scholarly journals A double-hurdle model estimation of cocoa farmers’ willingness to pay for crop insurance in Ghana

SpringerPlus ◽  
2016 ◽  
Vol 5 (1) ◽  
Author(s):  
Elvis Dartey Okoffo ◽  
Elisha Kwaku Denkyirah ◽  
Derick Taylor Adu ◽  
Benedicta Yayra Fosu-Mensah
Keyword(s):  
Willingness To Pay ◽  
Crop Insurance ◽  
Hurdle Model ◽  
Model Estimation ◽  
Double Hurdle Model ◽  
Double Hurdle ◽  
Cocoa Farmers

Influence of non-price incentives on the choice of cocoa licensed buying companies by farmers in the Western North of Ghana

2019 ◽  
Vol 9 (4) ◽  
pp. 402-418 ◽  
Author(s):  
Richard Kwasi Bannor ◽  
Helena Oppong-Kyeremeh ◽  
Samuel Atewene ◽  
Camillus Abawiera Wongnaa
Keyword(s):  
Research Question ◽  
Methodological Approach ◽  
Internal Marketing ◽  
Hurdle Model ◽  
Cocoa Beans ◽  
Content Type ◽  
Double Hurdle Model ◽  
Factors Influencing ◽  
Marketing Efficiency ◽  
Double Hurdle

Purpose The purpose of this paper is to examine the factors influencing the choice and the amount of cocoa beans sold to public and private licensed buying companies in the Western North of Ghana. Design/methodology/approach The study was conducted in the Western North of Ghana. Cragg’s Double Hurdle model was used to examine the factors influencing the choice of licensed buying company (LBC) whereas Kendall’s coefficient of concordance was employed in analysis of the marketing challenges. Findings The results showed that non-price incentives determine the choice and the amount cocoa beans sold to an LBC. Specifically, education, years of experience in cocoa farming and timely payment of sold cocoa beans positively influence the choice of public LBC. However, off farm job participation, provision of credit facilities and extension services affect the choice of private LBC as marketing outlet. Perceived low price of cocoa beans, inadequate credit support, and adjustment of scales used in weighing of cocoa beans were identified as the most important challenges confronting farmers. Research limitations/implications The research provides important information on non-price incentives influencing cocoa marketing outlet decision as well as the marketing challenges faced by farmers which can contribute to improving internal marketing efficiency of the cocoa industry in Ghana. Besides, this study also extends the frontiers in terms of methodological approach by adopting Cragg’s Double Hurdle Model in addressing the research question. Originality/value The research provides important information on non-price incentives influencing cocoa marketing outlet decision as well as the marketing challenges faced by farmers which can contribute to improving internal marketing efficiency of the cocoa industry in Ghana. Besides, this study also extends the frontiers in terms of methodological approach by adopting Cragg’s Double Hurdle Model in addressing the research question.

scholarly journals Determinants of Off-Farm Income among Smallholder Rice Farmers in Northern Ghana: Application of a Double-Hurdle Model

2019 ◽  
Vol 2019 ◽  
pp. 1-7 ◽  
Author(s):  
Benjamin Tetteh Anang ◽  
Richard W. N. Yeboah
Keyword(s):  
Rural Areas ◽  
Smallholder Farmers ◽  
Northern Ghana ◽  
Farm Income ◽  
Hurdle Model ◽  
Income Diversification ◽  
Farm Work ◽  
Double Hurdle Model ◽  
Rice Farmers ◽  
Double Hurdle

Income diversification by farm households has gained the attention of researchers and policy makers due to its commonness especially in developing countries. This study sought to empirically investigate the determinants of off-farm income among smallholder farmers in northern Ghana using a sample of 300 rice farmers. A double-hurdle model was used to determine the factors influencing participation in off-farm work as well as the predictors of actual amounts earned from working outside the farm. The results revealed that gender, farming experience, years of education, and access to credit are the factors determining participation in off-farm work while farming experience, years of education, and geographical location are the determinants of income from off-farm work. The paper concludes that measures to enhance rural income diversification will spur the rural economy and these measures should seek to address the problem of low level of formal education in rural areas.

scholarly journals Determinants of Inorganic Fertilizer Use Intensity on Cereal Crop among Smallholder Farmers: The Case of Toke Kutaye District, West Shewa Zone, Oromia National Regional State, Ethiopia

2022 ◽  
Author(s):  
Aman Dassa ◽  
Abera Ifa ◽  
Efa Gobena
Keyword(s):  
Inorganic Fertilizer ◽  
Farm Income ◽  
Hurdle Model ◽  
Cereal Crop ◽  
Fertilizer Use ◽  
Explanatory Variables ◽  
Double Hurdle Model ◽  
Small Holders ◽  
Double Hurdle ◽  
Land Size

Abstract The study was aimed to analysis determinants of inorganic fertilizer use intensity on cereal crops among small holders in Toke Kutaye District, West Shewa Zone, Ethiopia. Correctional data were collected from 156 respondents using two stage random sampling methods. Data analyses were carried out using descriptive statistics and Double hurdle model. Result of the first hurdle reveals that out of twelve explanatory variables Sex ,Education, Off/non-farm income, Land size and Improved seed were determine positively whereas Age and Distance from nearest market determine small holders use of inorganic fertilizer negatively. The result of second stage of double hurdle model indicate that, out of twelve explanatory variables Sex, family size and Land size were positively affect extent (intensity) of inorganic fertilizer use whereas Age and Distance of household from nearest market determine use intensity negatively. Therefore, these results implied that there is a room to increase inorganic fertilizer use intensity on cereal crop productions. Hence, Farmers capacity to purchase this input beginning from lower income farmers to model farmers should be acknowledged; and should be designed the means to address those who have no ability to use inorganic fertilizer in their own farm through diverse development interventions.

scholarly journals Environmental Disclosure Modelling in a Developing Economy: Does Corporate Governance Matter? A Double Hurdle Regression Approach

2021 ◽  
Vol 12 (4) ◽  
pp. 111
Author(s):  
Gbenga Ekundayo ◽  
Ndubuisi Jeffery Jamani ◽  
Festus Odhigu
Keyword(s):  
Corporate Governance ◽  
Environmental Information ◽  
Information Criteria ◽  
Annual Reports ◽  
Hurdle Model ◽  
Developing Economy ◽  
Significant Determinant ◽  
Environmental Disclosure ◽  
Double Hurdle Model ◽  
Double Hurdle

The paper examines environmental Disclosure Modelling in a Developing Economy using the Craigg double hurdle model and controlling for the role of corporate governance. This study employs the ex-post research design and investigates firm’s environmental disclosures in Nigeria, by controlling for corporate governance characteristics. The study employs a sample of 35 non-financial firms listed on the Nigerian Stock Exchange using the simple random sampling technique. Secondary data retrieved from the financial statements of the selected companies was used for the study. Both the Tobit and double-hurdle models were estimated but based on the Bayesian and Akaike’s information criteria for model selection, the double-hurdle model is preferred. The result reveals that though Board size is not a significant determinant of probability to disclose environmental information in annual reports (-0.0408, p=0.175), it is a significant determinant of the extent of environmental disclosure reports (0.1943, p=0.00) given that a firm has decided to disclose. Board independence is a significant determinant of both probability to disclose environmental information and extent of disclosure (-2.2373, p=0.00) with a negative coefficient. The Board gender diversity is not a significant determinant of probability to disclose environmental information in annual reports (-0.60076, p=0.461), it is a nevertheless a significant determinant of the extent of environmental disclosure reports (-3.5913, p=0.00) when firms then decide to disclose. Institutional ownership turns out to be a significant determinant of both the probability to disclose environmental information and extent of disclosure (0.0273, p=0.00) when firms choose to disclose. Finally, the truncated model results also reveals that though managerial ownership is not a significant determinant of probability to disclose environmental information in annual reports (-0.01352, p=0.148), it is nevertheless a significant determinant of the extent of environmental disclosure reports (-0.0206, p=0.001) when firms then decide to disclose.

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