Barriers to Household Risk Management : Evidence from India.
Robert M. Townsend
Bok Engelsk 2012 · Electronic books.
| Annen tittel | |
|---|---|
| Omfang | 1 online resource (44 pages)
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| Utgave | 1st ed.
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| Opplysninger | Cover -- Contents -- Abstract -- I. Introduction -- II. Insurance Contract Design and Summary Statistics -- A. Product Description -- B. Summary Statistics -- III. Experimental Design -- IV. Experimental Results -- A. Andhra Pradesh -- B. Gujarat: Video Experiments -- C. Gujarat: Flyer Experiments -- V. Discussion of Experimental Results -- A. Price Relative to Actuarial Value -- B. Trust -- C. Liquidity Constraints -- D. Financial Literacy and Education -- E. Framing, Salience and Other Behavioral Factors -- VI. Non-Experimental Evidence -- A. Correlates of Insurance Purchase -- B. Self-Reported Explanations for Non-Purchase -- VII. Improving Household Risk Management: Tentative Lessons and Conclusions -- References -- VIII. Appendix.. - 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.
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| Emner | |
| Sjanger | |
| Dewey | |
| ISBN | 1475512341. - 9781475512342
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