This paper describes the contract design and institutional features of an innovative rainfall insurance policy offered to smallholder farmers in rural India, and presents preliminary evidence on the determinants of insurance participation. Insurance takeup is found to be decreasing in basis risk between insurance payouts and income fluctuations, increasing in household wealth and decreasing in the extent to which credit constraints bind. These results...
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INFORMATION
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2007/11/01
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Document de travail de recherche sur les politiques
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WPS4408
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1
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1
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2010/07/01
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Disclosed
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Patterns of rainfall insurance participation in rural India
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Finance & Private Sector Development
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