Price Risk Management effect on the China’s Egg "Insurance + Futures" Mode





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.

Author Biographies

ZHAO Yuhe, Beijing Wuzi University

Master's degree. Graduate student. College of Economics, Beijing Wuzi University.

LIU Chen, College of Economics, Beijing Wuzi University.

Doctor’s degree. Lecturer. Research direction: Futures and financial derivatives. College of Economics.





Special Issue on Machin Learning (CS)