Ex ante and ex post effects of hybrid index insurance in Bangladesh.

ABSTRACT: 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

SUBMITTER: Hill RV 

PROVIDER: S-EPMC6472668 | biostudies-literature | 2019 Jan

REPOSITORIES: biostudies-literature