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We, in this study, investigate the effect of the livestock disease insurance which has been a pilot policy implemented by the Korean government since 2018. The main goal of the policy is to stabilize and improve the livestock owners’ income by reducing the death rate of the livestock with the support of veterinarians, but there has been no study on whether the policy can achieve this important goal. To estimate the policy effect, we compare the death rates of Korean cows in the livestock farm samples from Cheongju where the policy has been implemented with those from Jincheon where the policy has not been implemented, by adopting the difference-in-difference (DID) analysis. The result shows that the livestock disease insurance reduces the death rate of Korean cows by 2.3-4.7% points. This suggests that the policy can achieve the main goal of improving the livestock owners’ income by reducing the death rate of Korean cows. |
