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Barriers to Household Risk Management: Evidence from India

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  • Petia Topalova

    ()

  • Shawn Cole

    ()

  • Xavier Gene
  • Jeremy Tobacman
  • Robert Townsend
  • James Vickery

Abstract

Why do many households remain exposed to large exogenous sources of non-systematic income risk? Why don’t financial markets develop to pool these risks? This paper uses a series of randomized field experiments to test the importance of price and non-price factors in the adoption of an innovative rainfall insurance product, designed to hedge a major source of agricultural production risk. [BREAD Working paper No.33]. URL:[http://ipl.econ.duke.edu/bread/papers/working/303.pdf].

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:4293.

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Date of creation: Jul 2011
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Handle: RePEc:ess:wpaper:id:4293

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Keywords: India; households; exogenous; risk; financial markets; non-price factors; rainfall; insurance product; agricultural production risk; Consumer Finance; Liquidity Constraints; Trust; economic development;

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