Publication:
Barriers to Household Risk Management : Evidence from India

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dc.contributor.authorCole, Shawn
dc.contributor.authorGiné, Xavier
dc.contributor.authorTobacman, Jeremy
dc.contributor.authorTopalova, Petia
dc.contributor.authorTownsend, Robert
dc.contributor.authorVickery, James
dc.date.accessioned2012-03-19T18:43:23Z
dc.date.available2012-03-19T18:43:23Z
dc.date.issued2010-12-01
dc.description.abstractWhy do many households remain exposed to large exogenous sources of non-systematic income risk? This paper uses a series of randomized field experiments in rural India to test the importance of price and non-price factors in the adoption of an innovative rainfall insurance product. The analysis finds that demand is significantly price-elastic, but that even if insurance were offered with payout ratios similar to US, widespread coverage would not be achieved. The paper identifies key non-price frictions that limit demand: liquidity constraints, particularly among poor households, lack of trust, and limited salience. The authors suggest potential improvements in contract design to mitigate these frictions.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101213144507
dc.identifier.doi10.1596/1813-9450-5504
dc.identifier.urihttps://hdl.handle.net/10986/3987
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5504
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO FINANCE
dc.subjectACCESS TO FINANCIAL SERVICES
dc.subjectADMINISTRATIVE DATA
dc.subjectADMINISTRATIVE RECORDS
dc.subjectADVERSE SELECTION
dc.subjectAGRICULTURAL ECONOMICS
dc.subjectASSET HOLDINGS
dc.subjectASSET MARKETS
dc.subjectASSET SALES
dc.subjectASYMMETRIC INFORMATION
dc.subjectBEHAVIORAL ECONOMICS
dc.subjectBIASES
dc.subjectBORROWING
dc.subjectBUSINESS SCHOOL
dc.subjectCASH ON HAND
dc.subjectCOLLATERAL
dc.subjectCOMMODITY
dc.subjectCOMMODITY PRICE
dc.subjectCOMMODITY RISK MANAGEMENT
dc.subjectCOMMUNITY GROUPS
dc.subjectCONSUMER
dc.subjectCONSUMER CREDIT
dc.subjectCONSUMER DURABLES
dc.subjectCONSUMER FINANCE
dc.subjectCONSUMERS
dc.subjectCONSUMPTION EXPENDITURES
dc.subjectCONSUMPTION SMOOTHING
dc.subjectCONTRACT DESIGN
dc.subjectCONTRIBUTION
dc.subjectCONTRIBUTIONS
dc.subjectCOUPON
dc.subjectCOUPONS
dc.subjectCREDIT CONSTRAINTS
dc.subjectCREDIT EXPANSION
dc.subjectCREDIT REGISTRIES
dc.subjectCROP FAILURE
dc.subjectDAILY WAGE
dc.subjectDEBT
dc.subjectDEBT CAPACITY
dc.subjectDEMOGRAPHIC
dc.subjectDEMOGRAPHIC CHARACTERISTICS
dc.subjectDEPOSITS
dc.subjectDERIVATIVES
dc.subjectDERIVATIVES MARKETS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDISABILITY
dc.subjectDISBURSEMENT
dc.subjectDISCOUNT RATE
dc.subjectDISCOUNT RATES
dc.subjectDIVERSIFICATION
dc.subjectDROUGHT
dc.subjectDROUGHTS
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectDURABLE
dc.subjectDURABLE GOODS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC RISKS
dc.subjectEDUCATION LEVEL
dc.subjectEDUCATION LEVELS
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET ECONOMIES
dc.subjectEMERGING MARKETS
dc.subjectEMPLOYEE
dc.subjectEXCHANGE RATE
dc.subjectEXOGENOUS INCOME
dc.subjectEXPENDITURE
dc.subjectEXPOSURE TO RISK
dc.subjectFARMER
dc.subjectFARMERS
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFEDERAL RESERVE SYSTEM
dc.subjectFINANCIAL CONSTRAINTS
dc.subjectFINANCIAL CONTRACT
dc.subjectFINANCIAL DECISION
dc.subjectFINANCIAL EDUCATION
dc.subjectFINANCIAL EDUCATION PROGRAM
dc.subjectFINANCIAL INNOVATION
dc.subjectFINANCIAL INNOVATIONS
dc.subjectFINANCIAL LITERACY
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL PRODUCTS
dc.subjectFINANCIAL QUESTIONS
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL STUDIES
dc.subjectFINANCIAL SUPPORT
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFUTURES
dc.subjectGENDER
dc.subjectGENERAL POPULATION
dc.subjectGOVERNMENT SUBSIDIES
dc.subjectHOMEOWNER
dc.subjectHOMEOWNERS
dc.subjectHOMEOWNERS INSURANCE
dc.subjectHOUSEHOLD FINANCE
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD WEALTH
dc.subjectHOUSEHOLDS
dc.subjectIMPERFECT INFORMATION
dc.subjectINCOME
dc.subjectINCOME SMOOTHING
dc.subjectINCOME VARIABILITY
dc.subjectINCOMES
dc.subjectINSURANCE
dc.subjectINSURANCE COMPANIES
dc.subjectINSURANCE COMPANY
dc.subjectINSURANCE INDUSTRY
dc.subjectINSURANCE MARKET
dc.subjectINSURANCE MARKETS
dc.subjectINSURANCE POLICIES
dc.subjectINSURANCE POLICY
dc.subjectINSURANCE PREMIUMS
dc.subjectINSURANCE PRODUCT
dc.subjectINSURANCE PRODUCTS
dc.subjectINSURER
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINVENTORY
dc.subjectLABORERS
dc.subjectLAND HOLDINGS
dc.subjectLANDOWNER
dc.subjectLEGAL PROTECTIONS
dc.subjectLENDER
dc.subjectLEVEL OF EDUCATION
dc.subjectLEVELS OF RISK
dc.subjectLIABILITY
dc.subjectLIFE INSURANCE
dc.subjectLIMITED ACCESS
dc.subjectLIMITED FINANCIAL LITERACY
dc.subjectLIMITED LIABILITY
dc.subjectLIQUID ASSETS
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CONSTRAINTS
dc.subjectLOAN
dc.subjectLOANS FOR FARMERS
dc.subjectLONG-TERM CARE
dc.subjectLONG-TERM CARE INSURANCE
dc.subjectLOW INCOME
dc.subjectLOWER INCOME
dc.subjectMARGINAL UTILITY OF CONSUMPTION
dc.subjectMARKET COMPETITION
dc.subjectMARKET ECONOMIES
dc.subjectMARKET FAILURE
dc.subjectMARKET PORTFOLIO
dc.subjectMARKETING
dc.subjectMARKETING EFFORT
dc.subjectMATH
dc.subjectMATHEMATICS
dc.subjectMICRO-INSURANCE
dc.subjectMICROFINANCE
dc.subjectMICROFINANCE INSTITUTION
dc.subjectMICROFINANCE INSTITUTIONS
dc.subjectMICROFINANCE LOANS
dc.subjectMICROINSURANCE
dc.subjectMONETARY FUND
dc.subjectMORAL HAZARD
dc.subjectMORTGAGE
dc.subjectMORTGAGE CHOICE
dc.subjectOPERATING COSTS
dc.subjectPAYOUT RATIO
dc.subjectPAYOUT RATIOS
dc.subjectPENETRATION RATE
dc.subjectPENSION
dc.subjectPOLITICAL ECONOMY
dc.subjectPORTFOLIO
dc.subjectPRICE INDICES
dc.subjectPRICE INSURANCE
dc.subjectPRICE SENSITIVITY
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPROBABILITIES
dc.subjectPROBABILITY
dc.subjectPROFITABILITY
dc.subjectPROSPERITY
dc.subjectPURCHASES
dc.subjectRATE OF RETURN
dc.subjectREMITTANCES
dc.subjectREPAYMENT
dc.subjectREPAYMENTS
dc.subjectREPUTATION
dc.subjectRESEARCH ASSISTANCE
dc.subjectRESERVE BANK
dc.subjectRESOURCE ALLOCATION
dc.subjectRETIREMENT
dc.subjectRETIREMENT SECURITY
dc.subjectRETURNS
dc.subjectRISK AVERSION
dc.subjectRISK DIVERSIFICATION
dc.subjectRISK EXPOSURE
dc.subjectRISK MANAGEMENT
dc.subjectRISK POOLING
dc.subjectRISK SHARING
dc.subjectRURAL FINANCE
dc.subjectSAFETY
dc.subjectSALES
dc.subjectSAVINGS
dc.subjectSAVINGS ACCOUNT
dc.subjectSAVINGS DEPOSITS
dc.subjectSECONDARY SCHOOL
dc.subjectSERIAL NUMBER
dc.subjectSKILLED WORKERS
dc.subjectSMART MONEY
dc.subjectSOCIAL COLLATERAL
dc.subjectSOURCES OF INCOME
dc.subjectSTOCK MARKET
dc.subjectSUPPLIERS
dc.subjectTAKE-UP RATE
dc.subjectTAKE-UP RATES
dc.subjectTECHNICAL SUPPORT
dc.subjectTECHNOLOGICAL ADVANCES
dc.subjectTRACK RECORD
dc.subjectTRANSACTIONS COSTS
dc.subjectTRANSITORY INCOME
dc.subjectVALUABLE
dc.subjectVALUE OF SAVINGS
dc.subjectVILLAGE
dc.subjectVILLAGES
dc.subjectVOLATILITY
dc.subjectWELFARE BENEFITS
dc.subjectWORTH
dc.titleBarriers to Household Risk Management : Evidence from Indiaen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleBarriers to household risk management: Evidence from India
okr.date.disclosure2010-12-01
okr.date.doiregistration2025-04-10T11:36:49.514529Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101213144507
okr.globalpracticeSocial Protection and Labor
okr.guid447891468260097293
okr.identifier.doi10.1596/1813-9450-5504
okr.identifier.externaldocumentum000158349_20101213144507
okr.identifier.internaldocumentum13233538
okr.identifier.reportWPS5504
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/12/13/000158349_20101213144507/Rendered/PDF/WPS5504.pdfen
okr.region.administrativeSouth Asia
okr.region.administrativeSouth Asia
okr.region.countryIndia
okr.region.geographicalSouth Asia
okr.region.geographicalAsia
okr.relation.associatedurlhttps://openknowledge.worldbank.org/handle/10986/17926
okr.sectorAgriculture, fishing, and forestry :: Agricultural extension and research
okr.topicSocial Protections and Labor::Labor Policies
okr.unitDevelopment Research Group (DECRG)
okr.unitDECRG: Finance & Priv Sec Devt (DECFP)
okr.volume1 of 1
relation.isAuthorOfPublication460a3e9c-f7d0-5335-977a-578f6fc8ebe3
relation.isAuthorOfPublication.latestForDiscovery460a3e9c-f7d0-5335-977a-578f6fc8ebe3
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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