Patterns of Rainfall Insurance Participation in Rural India

Take-up of an innovative rainfall insurance policy offered to smallholder farmers in rural India decreases with basis risk between insurance payouts and income fluctuations, increases with household wealth, and decreases with binding credit constraints. These results are consistent with the predicti...

Full description

Bibliographic Details
Main Authors:	Giné, Xavier, Townsend, Robert, Vickery, James
Format:	Journal Article
Published:	World Bank 2012
Subjects:	federal reserve bank of new york financial institutions insurance liquid assets local financial institutions microfinance moral hazard risk management savings technical assistance
Online Access:	http://hdl.handle.net/10986/4491

id	okr-10986-4491
recordtype	oai_dc
spelling	okr-10986-44912021-04-23T14:02:18Z Patterns of Rainfall Insurance Participation in Rural India Giné, Xavier Townsend, Robert Vickery, James federal reserve bank of new york financial institutions insurance liquid assets local financial institutions microfinance moral hazard risk management savings technical assistance Take-up of an innovative rainfall insurance policy offered to smallholder farmers in rural India decreases with basis risk between insurance payouts and income fluctuations, increases with household wealth, and decreases with binding credit constraints. These results are consistent with the predictions of a simple neoclassical model with borrowing constraints. Other patterns are less consistent with the benchmark model. For example, participation in village networks and measures of familiarity with the insurance vendor are strongly correlated with insurance take-up decisions, and risk-averse households are less, not more, likely to purchase insurance. These results may reflect household uncertainty about the product, given their limited experience with it. 2012-03-30T07:12:37Z 2012-03-30T07:12:37Z 2008-12-01 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/4491 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank World Bank Journal Article South Asia India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	federal reserve bank of new york financial institutions insurance liquid assets local financial institutions microfinance moral hazard risk management savings technical assistance
spellingShingle	federal reserve bank of new york financial institutions insurance liquid assets local financial institutions microfinance moral hazard risk management savings technical assistance Giné, Xavier Townsend, Robert Vickery, James Patterns of Rainfall Insurance Participation in Rural India
geographic_facet	South Asia India
description	Take-up of an innovative rainfall insurance policy offered to smallholder farmers in rural India decreases with basis risk between insurance payouts and income fluctuations, increases with household wealth, and decreases with binding credit constraints. These results are consistent with the predictions of a simple neoclassical model with borrowing constraints. Other patterns are less consistent with the benchmark model. For example, participation in village networks and measures of familiarity with the insurance vendor are strongly correlated with insurance take-up decisions, and risk-averse households are less, not more, likely to purchase insurance. These results may reflect household uncertainty about the product, given their limited experience with it.
format	Journal Article
author	Giné, Xavier Townsend, Robert Vickery, James
author_facet	Giné, Xavier Townsend, Robert Vickery, James
author_sort	Giné, Xavier
title	Patterns of Rainfall Insurance Participation in Rural India
title_short	Patterns of Rainfall Insurance Participation in Rural India
title_full	Patterns of Rainfall Insurance Participation in Rural India
title_fullStr	Patterns of Rainfall Insurance Participation in Rural India
title_full_unstemmed	Patterns of Rainfall Insurance Participation in Rural India
title_sort	patterns of rainfall insurance participation in rural india
publisher	World Bank
publishDate	2012
url	http://hdl.handle.net/10986/4491
_version_	1764391595111612416

Patterns of Rainfall Insurance Participation in Rural India

Similar Items