In discussing the paradoxical violation of expected utility theory that now bears his name, Maurice Allais noted that people tend to “greatly value,” or overweight, outcomes that are certain. Digging deeper, the Principal Investigator draws on the more recent work of Andreoni and Sprenger on a Discontinuous Preference for Certainty and show that that impact of the rebate framing on willingness to pay for insurance is driven by individuals who exhibit a well defined discontinuous preference for certainty.
The research team describes the methodology used to design the contract and its underlying index of predicted area-average livestock mortality in Index-based Livestock Insurance. The Principal Investigator describes the contract pricing and the risk exposures of the underwriter to establish IBLI’s reinsurability on international markets.
In this study, AMA Innovation Lab researchers play a series of incentivized laboratory games with risk-exposed cooperative-based coffee farmers in Guatemala to understand the demand for index-based rainfall insurance.
This paper exploits a natural experiment wherein tens of thousands of microfinance borrowers across rural Haiti received a quasi-random value of insurance benefit in the aftermath of catastrophic hurricanes, and shows that greater insurance increased a beneficiary's demand for credit on the extensive margin, e.g. made formal lending relationships more durable.
This ILRI Research Brief describes the Index-Based Livestock Insurance (IBLI) product, piloted in northern Kenya and southern Ethiopia since early 2010.
In this paper, we employ a dynamic, stochastic, heterogeneous agent model where farm households have access to contingent credit and make savings, technology and loan repayment choices.
This presentation took place at George Washington University, United States on November 6, 2014 describing how greater use of improved technologies could raise productivity and welfare in developing countries.
This presentation took place at George Washington University, United States on November 6, 2014 describing the adoption of improved seeds in Uganda and Senegal using index insurance.
This presentation took place at George Washington University, United States on November 6, 2014 describing how poor market integration in African markets result in barriers to building market linkages.
This presentation took place at George Washington University, United States on November 6, 2014 describing how behavioral lab experiments have uncovered a wealth of evidence contradictory to standard economic workhorse theories.
