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.
This paper measures the impacts of perceived risk reduction and objective risk reduction at the individual level using two instrumental variable strategies. The results show that households who felt insured increased their area in cotton by more than 60%.
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 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.