Price Risk Management effect on the China’s Egg "Insurance + Futures" Mode : an empirical analysis based on the AR-Net model

Stable egg prices in China are related to people's livelihood, and layer farmers are facing the risk of large fluctuations in egg prices. This paper verifies that the AR-Net model can predict egg futures prices better than neural network model or other universal statistical models. Based on th...

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Main Authors: Chen LIU, ZHAO Yuhe
Format: Article
Language:English
Published: Elsevier 2022-06-01
Series:Kuwait Journal of Science
Online Access:https://journalskuwait.org/kjs/index.php/KJS/article/view/19407
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author Chen LIU
ZHAO Yuhe
author_facet Chen LIU
ZHAO Yuhe
author_sort Chen LIU
collection DOAJ
description Stable egg prices in China are related to people's livelihood, and layer farmers are facing the risk of large fluctuations in egg prices. This paper verifies that the AR-Net model can predict egg futures prices better than neural network model or other universal statistical models. Based on this result, the AR-Net model is also used to determine the insurance price and premium rates, further to evaluate price risk management effect of the "insurance + futures" mode. On this basis, we obtained several important conclusions: (1) Compared to other price prediction methods, AR-Net model is more suitable for egg futures price prediction in China. (2) China’s egg "insurance +futures" mode can conducive to stabilizing the income of layer farmers. (3) "Insurance + Futures" mode can exert better risk management results compared with traditional "insurance + futures" mode and agricultural price insurance.
format Article
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institution Kabale University
issn 2307-4108
2307-4116
language English
publishDate 2022-06-01
publisher Elsevier
record_format Article
series Kuwait Journal of Science
spelling doaj-art-59fed17e99d54d25ad016fa1706287582025-08-20T03:24:56ZengElsevierKuwait Journal of Science2307-41082307-41162022-06-0110.48129/kjs.splml.19407Price Risk Management effect on the China’s Egg "Insurance + Futures" Mode : an empirical analysis based on the AR-Net modelChen LIU0ZHAO Yuhe1 College of Economics, Beijing Wuzi University.Beijing Wuzi University Stable egg prices in China are related to people's livelihood, and layer farmers are facing the risk of large fluctuations in egg prices. This paper verifies that the AR-Net model can predict egg futures prices better than neural network model or other universal statistical models. Based on this result, the AR-Net model is also used to determine the insurance price and premium rates, further to evaluate price risk management effect of the "insurance + futures" mode. On this basis, we obtained several important conclusions: (1) Compared to other price prediction methods, AR-Net model is more suitable for egg futures price prediction in China. (2) China’s egg "insurance +futures" mode can conducive to stabilizing the income of layer farmers. (3) "Insurance + Futures" mode can exert better risk management results compared with traditional "insurance + futures" mode and agricultural price insurance. https://journalskuwait.org/kjs/index.php/KJS/article/view/19407
spellingShingle Chen LIU
ZHAO Yuhe
Price Risk Management effect on the China’s Egg "Insurance + Futures" Mode : an empirical analysis based on the AR-Net model
Kuwait Journal of Science
title Price Risk Management effect on the China’s Egg "Insurance + Futures" Mode : an empirical analysis based on the AR-Net model
title_full Price Risk Management effect on the China’s Egg "Insurance + Futures" Mode : an empirical analysis based on the AR-Net model
title_fullStr Price Risk Management effect on the China’s Egg "Insurance + Futures" Mode : an empirical analysis based on the AR-Net model
title_full_unstemmed Price Risk Management effect on the China’s Egg "Insurance + Futures" Mode : an empirical analysis based on the AR-Net model
title_short Price Risk Management effect on the China’s Egg "Insurance + Futures" Mode : an empirical analysis based on the AR-Net model
title_sort price risk management effect on the china s egg insurance futures mode an empirical analysis based on the ar net model
url https://journalskuwait.org/kjs/index.php/KJS/article/view/19407
work_keys_str_mv AT chenliu priceriskmanagementeffectonthechinasegginsurancefuturesmodeanempiricalanalysisbasedonthearnetmodel
AT zhaoyuhe priceriskmanagementeffectonthechinasegginsurancefuturesmodeanempiricalanalysisbasedonthearnetmodel