Ex ante and ex post effects of hybrid index insurance in Bangladesh
Bibliographic Data
| ID | 11889271 |
|---|---|
| Authors | Ruth Vargas Hill (0000-0002-6868-1215, World Bank), Neha Kumar (0000-0001-7982-3277, International Food Policy Research Institute), Nicholas Magnan (0000-0002-5294-2126, University of Georgia), Simrin Makhija (International Food Policy Research Institute), Francesca de Nicola (0000-0002-9212-0725, World Bank), David J Spielman (0000-0002-6889-7358, International Food Policy Research Institute), Patrick S Ward (0000-0001-8793-1200, Duke Kunshan University, corresponding author) |
| Year | 2018 |
| Volume | 136 |
| Pages | 1-17 |
| Publication date | 2018-09-15 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Development Economics (JOURNAL) |
| Journal identifiers | ISSN: 0304-3878 • E-ISSN: 1872-6089 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.jdeveco.2018.09.003 |
| PMID | 31007349 |
| OpenAlex | W2891522014 |
| Language | EN |
| Citations received | 22 |
| References cited | 38 |
This study assesses both the demand for and effectiveness of an index insurance product designed to help smallholder farmers in Bangladesh manage crop production risk during the monsoon season. Villages were randomized into either an insurance treatment or a comparison group, and discounts and rebates were randomly allocated across treatment villages to encourage insurance take-up and to allow for the estimation of the price-elasticity of insurance demand. Among those offered insurance, we find demand to be fairly price elastic, with discounts significantly more successful in stimulating demand than rebates. Purchasing insurance yields both ex ante risk management effects as well as ex post income effects on agricultural production practices. The risk management effects lead to an expansion of cultivated area with concomitant increases in agricultural input expenditures during the monsoon season. The income effects lead to more intensive rice production during the subsequent dry season, with more intensive use of both irrigation and fertilizers, resulting in higher yields and higher total rice production
Agricultural economics · Agricultural science · Agriculture · Business · Crop insurance · Economics · Ex-ante · Geography · Operations management · Price elasticity of demand · Production (economics · Purchasing · Agricultural risk and resilience · Income, Poverty, and Inequality · Poverty, Education, and Child Welfare
Index insurance and basis risk
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Climate-induced cross-border migration and change in demographic structure
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Recent approaches in agricultural production economics
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Demand for Complementary Financial and Technological Tools for Managing Drought Risk
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Agricultural Decisions after Relaxing Credit and Risk Constraints
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Nudging Farmers to Use Fertilizer
Attitudes Toward Risk
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Identification and Estimation of Local Average Treatment Effects
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Understanding Poverty
The Effect of Microinsurance on Economic Activities
The Demand for Microinsurance
Bonus of rebate
New modalities for managing drought risk in rainfed agriculture
Poverty Traps and Index-Based Risk Transfer Products
Experimental identification of asymmetric information
Where and how index insurance can boost the adoption of improved agricultural technologies
Beyond baseline and follow-up
Insurance, credit, and technology adoption
Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments
| Unique citing works | 22 |
|---|---|
| Citations per year | 3,14 |
| Citation span | 2019 - 2026 (8) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 22 |