Barriers to Household Risk Management : Evidence from India Cole, Shawn A. Giné, Xavier Tobacman, Jeremy Townsend, Robert M. Topalova, Petia Vickery, James 2014-04-21T18:58:39Z 2014-04-21T18:58:39Z 2013-01
dc.description.abstract Why do many households remain exposed to large exogenous sources of nonsystematic income risk? We use a series of randomized field experiments in rural India to test the importance of price and nonprice factors in the adoption of an innovative rainfall insurance product. Demand is significantly price sensitive, but widespread take-up would not be achieved even if the product offered a payout ratio comparable to US insurance contracts. We present evidence suggesting that lack of trust, liquidity constraints, and limited salience are significant nonprice frictions that constrain demand. We suggest possible contract design improvements to mitigate these frictions. en
dc.identifier.citation American Economic Journal: Applied Economics
dc.identifier.issn 1945-7782
dc.identifier.other 10.1257/app.5.1.104
dc.language.iso en_US
dc.publisher American Economic Association
dc.rights CC BY 3.0 IGO
dc.rights.holder American Economic Association
dc.subject personal finance
dc.subject risk
dc.subject uncertainty
dc.subject decision-making
dc.subject microeconomic analyses
dc.subject economic development
dc.subject agriculture
dc.subject saving and capital investment
dc.subject farm households
dc.subject rural transportation
dc.title Barriers to Household Risk Management : Evidence from India en
dc.type Journal Article en
dc.type Article de journal fr
dc.type Artículo de revista es
dspace.entity.type Publication 2014-03-18
okr.doctype Publications & Research :: Journal Article
okr.externalcontent External Content
okr.globalpractice Social, Urban, Rural and Resilience
okr.globalpractice Finance and Markets
okr.globalpractice Transport and ICT
okr.globalpractice Finance and Markets
okr.identifier.doi 10.1257/app.5.1.104
okr.journal.nbpages 104-135
okr.language.supported en
okr.peerreview Academic Peer Review India
okr.topic Finance and Financial Sector Development :: Insurance & Risk Mitigation
okr.topic Finance and Financial Sector Development :: Microfinance
okr.topic Rural Development :: Rural Development Strategy & Policy
okr.topic Rural Development :: Rural Microfinance and SMEs
okr.topic Rural Development :: Rural Roads & Transport
okr.volume 5(1)
relation.isAuthorOfPublication 460a3e9c-f7d0-5335-977a-578f6fc8ebe3
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