We hypothesize a reciprocal causation between crop insurance use and the economic performance of farms in an environment characterized by imperfect financial markets and farms' budget constraints. To test our hypothesis, we apply a system of simultaneous equations consisting of economic...

The context of European Union farms is markedly diverse. This is verified when, for example, several dimensions of the agricultural sector are analyzed, considering variables related with economic, social, or environmental dynamics. Indeed, frequently the farms in EU countries present relevant...