Patterns of Rainfall Insurance Participation In Rural India. Xavier Gine (World Bank) Robert Townsend (University of Chicago) James Vickery (NY Fed). World Bank Conference: Access to Finance March 15, 2007. Introduction.
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Xavier Gine (World Bank)
Robert Townsend (University of Chicago)
James Vickery (NY Fed)
World Bank Conference: Access to Finance
March 15, 2007
rainfall during phase
(corresponds to crop failure)
Other predictions outside formal model:
“What are the major sources of risk faced by your household?
“If it does not rain, what do you do?”
Reasons for not purchasing insurance | meeting participation
Regression also includes village dummies, five other covariates. N=752
Inverse relationship between risk aversion, participation concentrated amongst households with less knowledge of insurance, insurance provider
Evidence in this paper is a small, preliminary step forward in understanding ‘microinsurance’. Some lessons:
Research in progress: Field experiment, randomize insurance provision across households.