This study uses a randomized experiment to investigate 1) the role of crop-price risk in reducing demand for credit among farmers and 2) how risk mitigation changes farmers’ investment decisions.
L’article présent résume le travail réalisé par Michael Carter, Rachid Laajaj et Andres Moya avec l’aide de Catherine Guirkinger et Ombeline De Bock, qui ont envisagé deux types d’indices : l’indice climatique et l’indice basé sur les rendements moyens.
This paper, which is primary methodological, seeks to facilitate future efforts to accumulate knowledge and understanding of how index insurance works and whether or not it is likely to deliver on the promise of positive impacts on household welfare and efficiency of the rural economy.
This paper explores whether, when and how index insurance can enhance the functioning of agricultural credit markets and enhance farmers’ expected income even as it reduces the variance of income.
We explore how dynamic field experiments can help (i) intended beneficiaries learn and understand these complicated benefit streams and (ii) researchers better understand how the poor respond to risk when faced with nonlinear welfare dynamics.
This paper evaluates the effectiveness of a new index-based livestock insurance (IBLI) product designed to compensate for area average predicted livestock mortality loss in northern Kenya, where previous work has established the presence of poverty traps.
In this paper, we study the adoption of an innovative rainfall insurance product designed to compensate low-income Indian farmers in case of deficient rainfall during the primary monsoon season.
This memorandum describes how the Normalized Difference Vegetation Index (NDVI) can help to realize the potential of index insurance to build credit markets, enhance technology adoption and support farmers' income.
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.