Potential Demand for Drought Insurance in Burkina Faso and Its Determinants
The objectives of this paper are twofold: (a) to estimate demand for formal drought insurance using farm household data in Burkina Faso and (b) to find what determines insurance demand. The following findings are salient. First, effective demand is found in all zones, which implies inadequacies in households' current self-insurance strategies. Second, there is much heterogeneity in the strategies to self-insure even within zones. Third, the expectation of public food aid decreases demand for drought insurance, which suggests that food aid is causing moral hazard. Fourth, households with large livestock holdings can reduce the size of herd by substituting drought insurance for livestock holdings. Copyright 1997, Oxford University Press.
Volume (Year): 79 (1997)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:79:y:1997:i:4:p:1193-1207. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.