Effects of Insurance Adoption and Risk Aversion on Agricultural Production and Technical Efficiency: A Panel Analysis for Italian Grape Growers

This article aims to evaluate the effect of insurance on production, technical efficiency, and input use Italian specialised-quality grape growers. A panel instrumental variable stochastic frontier approach is applied over years 2008–2017 using data from Farm Accountancy Data Network. The results show requirement correct for endogeneity that stems adoption. Insurance has an enhancing production efficiency reduces intermediate inputs. It suggests helps diminish risk-averse farmers’ suboptimal due presence uncertainty. Crop leads farmers behave as if they were risk neutral employs profit-maximising vector. Therefore, by reducing risks linked uncertainty outcomes, crop growers go in direction profit maximisation.