Barriers to Household Risk Management : Evidence from India /

Why do many households remain exposed to large exogenous sources of non-systematic income risk? We use 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. Demand is significantly pr...

Ausführliche Beschreibung

Bibliographische Detailangaben
1. Verfasser: Townsend, Robert
Weitere Verfasser: Cole, Shawn, Gine, Xavier, Tobacman, Jeremy
Format: Zeitschrift
Sprache:English
Veröffentlicht: Washington, D.C. : International Monetary Fund, 2012.
Schriftenreihe:IMF Working Papers; Working Paper ; No. 2012/195
Online Zugang:Full text available on IMF
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100 1 |a Townsend, Robert. 
245 1 0 |a Barriers to Household Risk Management :   |b Evidence from India /  |c Robert Townsend, Shawn Cole, Jeremy Tobacman, Xavier Gine. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2012. 
300 |a 1 online resource (43 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a Why do many households remain exposed to large exogenous sources of non-systematic income risk? We use 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. Demand is significantly price sensitive, but widespread take-up would not be achieved even if the product offered a payout ratio comparable to U.S. insurance contracts. We present evidence suggesting that lack of trust, liquidity constraints and limited salience are significant non-price frictions that constrain demand. We suggest contract design improvements to mitigate these frictions. 
538 |a Mode of access: Internet 
700 1 |a Cole, Shawn. 
700 1 |a Gine, Xavier. 
700 1 |a Tobacman, Jeremy. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2012/195 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2012/195/001.2012.issue-195-en.xml  |z IMF e-Library