Take-up of an innovative rainfall insurance policy offered to smallholder farmers in rural India decreases with basis risk between insurance payouts and income fluctuations, increases with household wealth, and decreases with binding credit constraints. These results are consistent with the predictions of a simple neoclassical model with borrowing constraints. Other patterns are less consistent with the benchmark model. For example, participation...
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INFORMATION
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2008/12/01
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Article de revue
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77580
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1
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1
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2013/05/28
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Disclosed
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Patterns of rainfall insurance participation in rural India
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center for economic policy
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