Перейти к основному содержанию

page search

Library Barriers to Household Risk Management : Evidence from India

Barriers to Household Risk Management : Evidence from India

Barriers to Household Risk Management : Evidence from India

Resource information

Date of publication
марта 2012
Resource Language
ISBN / Resource ID
oai:openknowledge.worldbank.org:10986/3987

Why 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.

Share on RLBI navigator
NO

Authors and Publishers

Author(s), editor(s), contributor(s)

Cole, Shawn
Giné, Xavier
Tobacman, Jeremy
Topalova, Petia
Townsend, Robert
Vickery, James

Data Provider