Publication:
Macroinsurance for Microenterprises : A Randomized Experiment in Post-Revolution Egypt

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dc.contributor.authorGroh, Matthew
dc.contributor.authorMcKenzie, David
dc.date.accessioned2014-10-06T20:17:18Z
dc.date.available2014-10-06T20:17:18Z
dc.date.issued2014-09
dc.description.abstractFirms in many developing countries cite macroeconomic instability and political uncertainty as major constraints to their growth. Economic theory suggests uncertainty can cause firms to delay investments until uncertainty is resolved. A randomized experiment was conducted in post-revolution Egypt to measure the impact of insuring microenterprises against macroeconomic and political uncertainty. Demand for macroeconomic shock insurance was high; 36.7 percent of microentrepreneurs in the treatment group purchased insurance. However, purchasing insurance does not change the likelihood that a business takes a new loan, the size of the loan, or how the loan is invested. This lack of effect is attributed to microenterprises largely investing in inventories and raw materials rather than irreversible investments like equipment. These results suggest that, contrary to what some firms profess, macroeconomic and political risk is not inhibiting the investment behavior of microenterprises. However, insurance may still be of value to help firms cope with shocks when they do occur, but the paper is unable to examine this dimension, because the insurance product did not pay out over the course of the pilot.en
dc.identifierhttp://documents.worldbank.org/curated/en/2014/09/20238435/macroinsurance-microenterprises-randomized-experiment-post-revolution-egypt
dc.identifier.doi10.1596/1813-9450-7048
dc.identifier.urihttps://hdl.handle.net/10986/20368
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank Group, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7048
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO FINANCE
dc.subjectACCESS TO FINANCING
dc.subjectACCOUNTING
dc.subjectACTUARIALLY FAIR INSURANCE
dc.subjectAMOUNT OF LOAN
dc.subjectAPR
dc.subjectASSETS
dc.subjectBANK LOAN
dc.subjectBANK POLICY
dc.subjectBANKING LAWS
dc.subjectBANKS
dc.subjectBORROWING
dc.subjectBUSINESS ACTIVITY
dc.subjectBUSINESS ASSOCIATION
dc.subjectBUSINESS OWNER
dc.subjectBUSINESS OWNERS
dc.subjectBUSINESS RISK
dc.subjectCAPITAL INVESTMENTS
dc.subjectCAPITAL STOCK
dc.subjectCASH FLOW
dc.subjectCASH ON HAND
dc.subjectCHECKS
dc.subjectCONSUMERS
dc.subjectCORRUPTION
dc.subjectCREDIT OFFICER
dc.subjectCURRENCY
dc.subjectDEBT
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDISCOUNT RATE
dc.subjectDUMMY VARIABLE
dc.subjectECONOMIC THEORY
dc.subjectEDUCATION LEVELS
dc.subjectELIGIBILITY CRITERIA
dc.subjectEMERGENCY LOAN
dc.subjectEMPLOYEE
dc.subjectEQUALITY
dc.subjectEQUIPMENT
dc.subjectEQUIPMENT PURCHASES
dc.subjectEXCHANGE RATE
dc.subjectFAIR PRICE
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL LITERACY
dc.subjectFIRE INSURANCE
dc.subjectFIRM PERFORMANCE
dc.subjectGASOLINE PRICES
dc.subjectGENDER
dc.subjectGOVERNMENT SUBSIDIES
dc.subjectGREATER ACCESS
dc.subjectGROUP LOAN
dc.subjectHEALTH INSURANCE
dc.subjectHOUSEHOLD CONSUMPTION
dc.subjectHOUSEHOLDS
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINDIVIDUAL LOANS
dc.subjectINFLATION
dc.subjectINSTALLMENT
dc.subjectINSTALLMENTS
dc.subjectINSURANCE
dc.subjectINSURANCE AGENCY
dc.subjectINSURANCE COVERAGE
dc.subjectINSURANCE MARKETS
dc.subjectINSURANCE PAYMENTS
dc.subjectINSURANCE PAYOUT
dc.subjectINSURANCE PENETRATION
dc.subjectINSURANCE POLICY
dc.subjectINSURANCE PREMIUM
dc.subjectINSURANCE PRODUCT
dc.subjectINSURANCE PRODUCTS
dc.subjectINSURANCE PROGRAM
dc.subjectINSURANCE SERVICES
dc.subjectINTEREST PAYMENT
dc.subjectINTEREST RATE
dc.subjectINTERNATIONAL BANK
dc.subjectINVENTORIES
dc.subjectINVENTORY
dc.subjectINVESTING
dc.subjectINVESTMENT ACTIVITIES
dc.subjectINVESTMENT BEHAVIOR
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectLACK OF KNOWLEDGE
dc.subjectLEGAL SYSTEM
dc.subjectLIFE INSURANCE
dc.subjectLIFE INSURANCE PREMIUMS
dc.subjectLIQUIDITY
dc.subjectLOAN
dc.subjectLOAN AMOUNT
dc.subjectLOAN AMOUNTS
dc.subjectLOAN OFFICER
dc.subjectLOAN OFFICERS
dc.subjectLOAN PERIOD
dc.subjectLOAN PRINCIPAL
dc.subjectLOAN PROGRAM
dc.subjectLOAN SIZE
dc.subjectLOAN SIZES
dc.subjectLONG-TERM INVESTMENTS
dc.subjectMACROECONOMIC INSTABILITY
dc.subjectMACROECONOMIC RISKS
dc.subjectMACROECONOMIC UNCERTAINTY
dc.subjectMARGINAL COEFFICIENTS
dc.subjectMARKET PRICES
dc.subjectMEDIAN FIRM
dc.subjectMFIS
dc.subjectMICROENTERPRISES
dc.subjectMICROFINANCE
dc.subjectMICROFINANCE INSTITUTION
dc.subjectMICROFINANCE INSTITUTIONS
dc.subjectMICROFINANCE LOAN
dc.subjectMICROFINANCE LOANS
dc.subjectNEED FOR CREDIT
dc.subjectNEGOTIATIONS
dc.subjectNEW MARKET
dc.subjectPOLICY ANALYSIS
dc.subjectPOLITICAL RISK
dc.subjectPOLITICAL RISKS
dc.subjectPOLITICAL UNCERTAINTY
dc.subjectPORTFOLIOS
dc.subjectPRINCIPAL PAYMENT
dc.subjectPROFITABILITY
dc.subjectPUBLIC POLICY
dc.subjectREFERENDUM
dc.subjectREGULATORY CONSTRAINTS
dc.subjectREGULATORY POLICY
dc.subjectREPAYMENT
dc.subjectRESERVES
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISK AVERSION
dc.subjectRISK MANAGEMENT
dc.subjectRISK OF DEFAULTS
dc.subjectRISK SHARING
dc.subjectSAVINGS
dc.subjectSET ASIDE
dc.subjectSMALL BUSINESS
dc.subjectSMALL BUSINESS OWNERS
dc.subjectSMALL ENTERPRISES
dc.subjectSOCIAL FUND
dc.subjectSOURCES OF FINANCE
dc.subjectSTOCK EXCHANGE
dc.subjectSTOCK MARKET
dc.subjectSUBSISTENCE FARMERS
dc.subjectSUBSTITUTION
dc.subjectTAX
dc.subjectTAX RATES
dc.subjectTELECOMMUNICATIONS
dc.subjectTRUST FUNDS
dc.subjectVILLAGES
dc.subjectWEATHER INSURANCE
dc.subjectWORKING CAPITAL
dc.titleMacroinsurance for Microenterprises : A Randomized Experiment in Post-Revolution Egypten
dspace.entity.typePublication
okr.crosscuttingsolutionareaClimate Change
okr.crossref.titleMacroinsurance for Microenterprises: A Randomized Experiment in Post-Revolution Egypt
okr.date.disclosure2014-09-15
okr.date.doiregistration2025-04-10T10:03:35.420039Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2014/09/20238435/macroinsurance-microenterprises-randomized-experiment-post-revolution-egypt
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid979021468025133354
okr.identifier.doi10.1596/1813-9450-7048
okr.identifier.externaldocumentum000158349_20140925191149
okr.identifier.internaldocumentum20238435
okr.identifier.reportWPS7048
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/09/25/000158349_20140925191149/Rendered/PDF/WPS7048.pdfen
okr.region.administrativeMiddle East and North Africa
okr.region.countryEgypt, Arab Republic of
okr.relation.associatedurlhttps://openknowledge.worldbank.org/handle/10986/22718
okr.sectorEducation :: Vocational training
okr.themeSocial dev/gender/inclusion :: Gender
okr.topicMacroeconomics and Economic Growth::Climate Change Economics
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicLaw and Development::Insurance Law
okr.unitFinance and Private Sector Development Team, Development Research Group
relation.isAuthorOfPublication148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isAuthorOfPublication.latestForDiscovery148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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