Quasi-Experimental Evidence on the Drivers of Index-Based Livestock Insurance Demand in Southern Ethiopia

Microinsurance is widely considered an important tool for sustainable poverty reduction, especially in the face of increasing climate risk. Although index based microinsurance, which should be free from the classical incentive problems, has attracted considerable attention, uptake rates have general...

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Autores principales: Takahashi, Kazushi, Ikegami, Munenobu, Sheahan, M., Barrett, Christopher B.
Formato: Informe técnico
Lenguaje:Inglés
Publicado: 2014
Materias:
Acceso en línea:https://hdl.handle.net/10568/68163
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author Takahashi, Kazushi
Ikegami, Munenobu
Sheahan, M.
Barrett, Christopher B.
author_browse Barrett, Christopher B.
Ikegami, Munenobu
Sheahan, M.
Takahashi, Kazushi
author_facet Takahashi, Kazushi
Ikegami, Munenobu
Sheahan, M.
Barrett, Christopher B.
author_sort Takahashi, Kazushi
collection Repository of Agricultural Research Outputs (CGSpace)
description Microinsurance is widely considered an important tool for sustainable poverty reduction, especially in the face of increasing climate risk. Although index based microinsurance, which should be free from the classical incentive problems, has attracted considerable attention, uptake rates have generally been weak in low-income rural communities. We explore the purchase patterns of index-based livestock insurance in southern Ethiopia, focusing in particular on the role of accurate product comprehension and price, icluding the prospective impact of temporary discount coupons on subsequent period demand due to price anchoring effects. We find that randomly distributed learning kits contribute to improving subjects' knowledge of the products; however, we do not find strong evidence that the improved knowledge per se induces greater uptake. We also find that reduced price due to randomly distributed discount coupons has an immediate, positive impact on uptake, without dampening subsequent period demand due to reference-dependence associated with price anchoring affects.
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spelling CGSpace681632023-02-15T09:12:49Z Quasi-Experimental Evidence on the Drivers of Index-Based Livestock Insurance Demand in Southern Ethiopia Takahashi, Kazushi Ikegami, Munenobu Sheahan, M. Barrett, Christopher B. climate change agriculture food security insurance Microinsurance is widely considered an important tool for sustainable poverty reduction, especially in the face of increasing climate risk. Although index based microinsurance, which should be free from the classical incentive problems, has attracted considerable attention, uptake rates have generally been weak in low-income rural communities. We explore the purchase patterns of index-based livestock insurance in southern Ethiopia, focusing in particular on the role of accurate product comprehension and price, icluding the prospective impact of temporary discount coupons on subsequent period demand due to price anchoring effects. We find that randomly distributed learning kits contribute to improving subjects' knowledge of the products; however, we do not find strong evidence that the improved knowledge per se induces greater uptake. We also find that reduced price due to randomly distributed discount coupons has an immediate, positive impact on uptake, without dampening subsequent period demand due to reference-dependence associated with price anchoring affects. 2014 2015-09-16T16:59:00Z 2015-09-16T16:59:00Z Report https://hdl.handle.net/10568/68163 en Open Access Takahashi K, Ikegami M, Sheahan M, Barrett CB. 2014. Quasi-Experimental Evidence on the Drivers of Index-Based Livestock Insurance Demand in Southern Ethiopia. IDE Discussion Paper No. 480. Chiba, Japan: IDE.
spellingShingle climate change
agriculture
food security
insurance
Takahashi, Kazushi
Ikegami, Munenobu
Sheahan, M.
Barrett, Christopher B.
Quasi-Experimental Evidence on the Drivers of Index-Based Livestock Insurance Demand in Southern Ethiopia
title Quasi-Experimental Evidence on the Drivers of Index-Based Livestock Insurance Demand in Southern Ethiopia
title_full Quasi-Experimental Evidence on the Drivers of Index-Based Livestock Insurance Demand in Southern Ethiopia
title_fullStr Quasi-Experimental Evidence on the Drivers of Index-Based Livestock Insurance Demand in Southern Ethiopia
title_full_unstemmed Quasi-Experimental Evidence on the Drivers of Index-Based Livestock Insurance Demand in Southern Ethiopia
title_short Quasi-Experimental Evidence on the Drivers of Index-Based Livestock Insurance Demand in Southern Ethiopia
title_sort quasi experimental evidence on the drivers of index based livestock insurance demand in southern ethiopia
topic climate change
agriculture
food security
insurance
url https://hdl.handle.net/10568/68163
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