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The impact of bundling index insurance with credit and input vouchers: Experimental evidence from Ethiopia

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  • Belissa, Temesgen K.
  • Lensink, Robert
  • Marr, Ana

Abstract

This study assesses the uptake and impact of bundling index insurance with credit and input vouchers through a randomized control trial experiment. Smallholder farmers in Ethiopia are randomly assigned to a control group and three treatment arms, namely: (1) stand-alone index insurance with upfront premium payment, (2) stand-alone index insurance with delayed premium payment, (3) bundled index insurance with credit and delayed premium payment, or (4) bundled index insurance with credit and input vouchers with delayed premium payment. Distinguishing itself from previous studies, our research specifically isolates the impact of bundling from that of delayed premiums. The results highlight the crucial role of the bundled aspect (i.e., credit and inputs), not only in increasing uptake but also in fostering farming investments and productivity.

Suggested Citation

  • Belissa, Temesgen K. & Lensink, Robert & Marr, Ana, 2025. "The impact of bundling index insurance with credit and input vouchers: Experimental evidence from Ethiopia," Journal of Economic Behavior & Organization, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:jeborg:v:234:y:2025:i:c:s0167268125001325
    DOI: 10.1016/j.jebo.2025.107013
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    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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