Publication:
Weather Index Insurance and Shock Coping: Evidence from Mexico's CADENA Program

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dc.contributor.authorde Janvry, Alain
dc.contributor.authorRamirez Ritchie, Elizabeth
dc.contributor.authorSadoulet, Elisabeth
dc.date.accessioned2016-07-07T20:53:34Z
dc.date.available2016-07-07T20:53:34Z
dc.date.issued2016-06
dc.description.abstractWeather risk and incomplete insurance markets are significant contributors to poverty for rural households in developing countries. Weather index insurance has emerged as a possible tool for overcoming these challenges. This paper provides evidence on the impact of weather index insurance from a pioneering, large-scale insurance program in Mexico. The focus of this analysis is on the ex-post effects of insurance payments. A regression discontinuity design provides find evidence that payments from weather index insurance allow farmers to cultivate a larger land area in the season following a weather shock. Households in municipalities receiving payment also appear to have larger per capita expenditures and income in the subsequent year, although there is suggestive evidence that some of this increase is offset by a decrease in remittances. While the cost of insurance appears to be high relative to the payouts, the benefits exceed the costs for a substantial range of outcomes.en
dc.identifierhttp://documents.worldbank.org/curated/en/2016/06/26510002/weather-index-insurance-shock-coping-evidence-mexicos-cadena-program
dc.identifier.doi10.1596/1813-9450-7715
dc.identifier.urihttps://hdl.handle.net/10986/24632
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7715
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectHOUSEHOLD INCOMES
dc.subjectRISKS
dc.subjectIMPACT OF HURRICANES
dc.subjectLANDHOLDINGS
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectPRODUCTION
dc.subjectRISK MANAGEMENT STRATEGIES
dc.subjectPUBLIC ECONOMICS
dc.subjectINCOME POVERTY
dc.subjectINCOME
dc.subjectCROPLAND
dc.subjectINTEREST
dc.subjectRATE OF RETURN
dc.subjectAGRICULTURAL PRODUCTION
dc.subjectEXCHANGE
dc.subjectREMITTANCE
dc.subjectINFORMATION
dc.subjectPROGRAMS
dc.subjectDEVELOPING COUNTRIES
dc.subjectPOLITICAL ECONOMY
dc.subjectWELFARE
dc.subjectINSURANCE POLICIES
dc.subjectEFFECTS
dc.subjectAGRICULTURAL ECONOMICS
dc.subjectLOSS RATIO
dc.subjectWEATHER INSURANCE
dc.subjectRURAL POPULATION
dc.subjectINTERNATIONAL BANK
dc.subjectHURRICANES
dc.subjectECONOMIC ANALYSIS
dc.subjectPOVERTY REDUCTION
dc.subjectRISK AVERSE INDIVIDUALS
dc.subjectCROP INSURANCE
dc.subjectRURAL POPULATIONS
dc.subjectUNINTENDED CONSEQUENCES
dc.subjectPER CAPITA INCOME
dc.subjectRURAL HOUSEHOLDS
dc.subjectCROWDING OUT
dc.subjectCOSTS OF INSURANCE
dc.subjectINSURANCE MARKETS
dc.subjectPREMIUM PAYMENTS
dc.subjectTRANSFERS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectMARKETS
dc.subjectHOUSEHOLD INCOME
dc.subjectORGANIZATIONS
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectRETURN
dc.subjectFARMERS
dc.subjectRISK SHARING
dc.subjectCASH TRANSFERS
dc.subjectINSURANCE COVERAGE
dc.subjectINSURANCE POLICY
dc.subjectLIVESTOCK ASSETS
dc.subjectFINANCE
dc.subjectCOVARIATE SHOCKS
dc.subjectINVESTMENT DECISIONS
dc.subjectEXPENDITURE
dc.subjectTRANSACTIONS
dc.subjectCONSUMPTION
dc.subjectCREDIT CONSTRAINTS
dc.subjectCLIMATE CHANGE
dc.subjectPOLICIES
dc.subjectDROUGHT
dc.subjectRUNNING WATER
dc.subjectCREDIT CONSTRAINT
dc.subjectFUTURE
dc.subjectVALUE
dc.subjectLOSSES
dc.subjectCREDIT
dc.subjectDISASTER RISK FINANCING
dc.subjectCLIMATE
dc.subjectDEMAND
dc.subjectMARKET CONSTRAINTS
dc.subjectMICROINSURANCE
dc.subjectEXPENDITURES
dc.subjectAGRICULTURAL LAND
dc.subjectSMALLHOLDER FARMERS
dc.subjectRURAL
dc.subjectMARKET
dc.subjectRISK TRANSFER
dc.subjectECONOMICS
dc.subjectPOLICY
dc.subjectPRIVATE TRANSFERS
dc.subjectMANAGEMENT
dc.subjectINSURANCE COSTS
dc.subjectINSURANCE
dc.subjectINSURANCE PREMIUMS
dc.subjectLOSS
dc.subjectCONSUMPTION SMOOTHING
dc.subjectTHEORY
dc.subjectINSURANCE PAYMENTS
dc.subjectDURABLE
dc.subjectINVESTMENT
dc.subjectECONOMIC IMPACTS
dc.subjectRISK
dc.subjectINDEMNITY
dc.subjectRURAL AREAS
dc.subjectPOVERTY
dc.subjectCREDIT MARKET CONSTRAINTS
dc.subjectTRANSACTIONS COSTS
dc.subjectRISK TAKING
dc.subjectINFORMAL INSURANCE
dc.subjectPOOR LIVING
dc.subjectINVESTMENTS
dc.subjectRISK MANAGEMENT
dc.subjectHOUSEHOLD EXPENDITURES
dc.subjectPOOR
dc.subjectINDEMNITY PAYMENTS
dc.subjectREMITTANCES
dc.subjectOUTCOMES
dc.subjectBASIS RISK
dc.subjectCOVERAGE
dc.subjectBENEFITS
dc.subjectCREDIT MARKET
dc.subjectPREMIUMS
dc.titleWeather Index Insurance and Shock Copingen
dc.title.subtitleEvidence from Mexico's CADENA Programen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleWeather Index Insurance and Shock Coping: Evidence from Mexico's CADENA Program
okr.date.disclosure2016-06-21
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2016/06/26510002/weather-index-insurance-shock-coping-evidence-mexicos-cadena-program
okr.guid563971467994584299
okr.identifier.doi10.1596/1813-9450-7715
okr.identifier.externaldocumentum090224b0843e9604_1_0
okr.identifier.internaldocumentum26510002
okr.identifier.reportWPS7715
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2016/06/21/090224b0843e9604/1_0/Rendered/PDF/Weather0index00ico0s0CADENA0Program.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryMexico
okr.topicAgriculture::Agricultural Knowledge & Information Systems
okr.topicAgriculture::Climate Change and Agriculture
okr.topicAgriculture::Crops & Crop Management Systems
okr.topicFinance and Financial Sector Development::Insurance & Risk Mitigation
okr.unitDisaster Risk Financing and Insurance Program (DRFIP)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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