Barriers to Household Risk Management Evidence from India

Author/creator Townsend, Robert M. Author
Other author Cole, Shawn Author
Other author Tobacman, Jeremy Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description74 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation 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.
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781475593686
ISBN1475593686 (E-Book) Active Record
Stock number00013468

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