Liquidity constraints, informal institutions, and the adoption of weather insurance: A randomized controlled Trial in Ethiopia
成果类型：
Article
署名作者：
Belissa, Temesgen; Bulte, Erwin; Cecchi, Francesco; Gangopadhyay, Shubhashis; Lensink, Robert
署名单位：
Wageningen University & Research; Haramaya University; Utrecht University; University of Groningen; University of Gothenburg
刊物名称：
JOURNAL OF DEVELOPMENT ECONOMICS
ISSN/ISSBN：
0304-3878
DOI：
10.1016/j.jdeveco.2019.06.006
发表日期：
2019
页码：
269-278
关键词：
摘要：
We report the results of a drought insurance experiment in Ethiopia, and examine whether uptake of index-based insurance is enhanced if we allow farmers to pay after harvest (addressing a liquidity constraint). We also test to what extent uptake can be enhanced by promoting insurance via informal risk-sharing institutions (Iddirs), to reduce trust and information problems. The delayed payment insurance product increases uptake substantially when compared to standard insurance, from 8% to 24%, and leveraging informal institutions results in even greater uptake (43%). We also find suggestive evidence that the delayed premium product is indeed better at targeting the liquidity constrained. However, default rates associated with delayed payments are relatively high and concentrated in a small number of Iddirs - potentially compromising the economic viability of the novel product. We discuss how default rates can be reduced.
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