Insurance and Rural Welfare: What can Panel Data tell us?
AbstractAssessing the scope for insurance in rural communities usually requires a structural model of household behavior under risk. One of the few empirical applications of such models is the study by Rosenzweig and Wolpin (1993) who conclude that Indian farmers in the ICRISAT villages would not benefit from the introduction of formal weather insurance. In this paper we investigate how models such as theirs can be estimated from panel data on production and assets. We show that if assets can take only a limited number of values the coefficients of the model cannot be estimated with reasonable precision. We also show that this can affect the conclusion that insurance would not be welfare improving.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 07-011/2.
Date of creation: 26 Jan 2007
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Structural estimation; discrete choices; insurance;
Other versions of this item:
- Chris Elbers & Jan Willem Gunning & Lei Pan, 2009. "Insurance and rural welfare: what can panel data tell us?," Applied Economics, Taylor & Francis Journals, vol. 41(24), pages 3093-3101.
- Chris Elbersa & Jan Willem Gunning & Lei Pan, 2007. "Insurance and Rural Welfare: What Can Panel Data Tell Us?," CSAE Working Paper Series 2007-13, Centre for the Study of African Economies, University of Oxford.
- Chris Elbers, 2007. "Insurance and Rural Welfare: What Can Panel Data Tell Us?," Economics Series Working Papers WPS/2007-13, University of Oxford, Department of Economics.
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-03-03 (Agricultural Economics)
- NEP-ALL-2007-03-03 (All new papers)
- NEP-DCM-2007-03-03 (Discrete Choice Models)
- NEP-DEV-2007-03-03 (Development)
- NEP-IAS-2007-03-03 (Insurance Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pushkar Maitra, 2001. "Is consumption smooth at the cost of volatile leisure? An investigation of rural India," Applied Economics, Taylor & Francis Journals, vol. 33(6), pages 727-734.
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"Growth and Risk: Methodology and Micro Evidence,"
Development and Comp Systems
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- Rosenzweig, Mark R & Wolpin, Kenneth I, 1993.
"Credit Market Constraints, Consumption Smoothing, and the Accumulation of Durable Production Assets in Low-Income Countries: Investment in Bullocks in India,"
Journal of Political Economy,
University of Chicago Press, vol. 101(2), pages 223-44, April.
- Rosenzweig, Mark R. & Wolpin, Kenneth I., 1989. "Credit Market Constraints, Consumption Smoothing and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks in India," Bulletins 7487, University of Minnesota, Economic Development Center.
- Chris Elbers & Jan Willem Gunning, 2002. "Growth Regression and Economic Theory," Tinbergen Institute Discussion Papers 02-034/2, Tinbergen Institute.
- Chris Elbers & Jan Willem Gunning, 2002.
"Growth Regression and Economic Theory,"
Tinbergen Institute Discussion Papers
02-034/2, Tinbergen Institute.
- Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
- Evan Tanner, 1997. "Shifts in US savings: long-run asset accumulation versus consumption smoothing," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 989-999.
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