A Two-Tiered Demographic System: "Insiders" and "Outsiders" in Three Swabian Communities, 1558-1914
The investment decisions of small-scale farmers in developing countries are conditioned by their financial environment. Binding credit market constraints and incomplete insurance can reduce investment in activities with high expected profits. We conducted several experiments in northern Ghana in which farmers were randomly assigned to receive cash grants, grants of or opportunities to purchase rainfall index insurance, or a combination of the two. Demand for index insurance is strong, and insurance leads to significantly larger agricultural investment and riskier production choices in agriculture. The salient constraint to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face, farmers are able to find resources to increase expenditure on their farms. Demand for insurance in subsequent years is strongly increasing in a farmer's own receipt of insurance payouts, and with the receipt of payouts by others in the farmer's social network. Both investment patterns and the demand for index insurance are consistent with the presence of important basis risk associated with the index insurance, and with imperfect trust that promised payouts will be delivered.
|Date of creation:||Feb 2013|
|Date of revision:|
|Contact details of provider:|| Postal: PO Box 8268, New Haven CT 06520-8268|
Phone: (203) 432-3576
Fax: (203) 432-5779
Web page: http://www.econ.yale.edu/ddp/
More information through EDIRC
References listed on IDEAS
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.:
- Timothy W. Guinnane, 2010.
"The Historical Fertility Transition: A Guide for Economists,"
990, Economic Growth Center, Yale University.
- Timothy W. Guinnane, 2011. "The Historical Fertility Transition: A Guide for Economists," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 589-614, September.
- Guinnane, Timothy W., 2010. "The Historical Fertility Transition: A Guide for Economists," Working Papers 84, Yale University, Department of Economics.
- Ogilvie, Sheilagh & Küpker, Markus & Maegraith, Janine, 2012. "Household Debt in Early Modern Germany: Evidence from Personal Inventories," The Journal of Economic History, Cambridge University Press, vol. 72(01), pages 134-167, March.
- Timothy Guinnane & Sheilagh Ogilvie, 2008.
"Institutions and Demographic Responses to Shocks: Württemberg, 1634-1870,"
962, Economic Growth Center, Yale University.
- Guinnane, Timothy W. & Ogilvie, Sheilagh, 2008. "Institutions and Demographic Responses to Shocks: Wurttemberg, 1634-1870," Working Papers 44, Yale University, Department of Economics.
- Toni Richards, 1983. "Weather, nutrition, and the economy: Short-run fluctuations in births, deaths, and marriages, France 1740–1909," Demography, Springer, vol. 20(2), pages 197-212, May.
- Noriko O. Tsuya & Wang Feng & George Alter & James Z. Lee, 2010. "Prudence and Pressure: Reproduction and Human Agency in Europe and Asia, 1700-1900," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013525, March.
- David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
- Oded Galor, 2005. "Unified Growth Theory," Development and Comp Systems 0504001, EconWPA.
- Ogilvie, Sheilagh, 2003. "A Bitter Living: Women, Markets, and Social Capital in Early Modern Germany," OUP Catalogue, Oxford University Press, number 9780198205548, May.
- Ogilvie, S. & Küpker, M. & Maegraith, J., 2009. "Community Characteristics and Demographic Development: Three Württemberg Communities, 1558 - 1914," Cambridge Working Papers in Economics 0910, Faculty of Economics, University of Cambridge.
- Weir, David R., 1984. "Life Under Pressure: France and England, 1670–1870," The Journal of Economic History, Cambridge University Press, vol. 44(01), pages 27-47, March.
- Sheilagh Ogilvie, 2002.
"Guilds, Efficiency, and Social Capital: Evidence from German Proto-Industry,"
CESifo Working Paper Series
820, CESifo Group Munich.
- Sheilagh Ogilvie, 2004. "Guilds, efficiency, and social capital: evidence from German proto-industry," Economic History Review, Economic History Society, vol. 57(2), pages 286-333, 05.
- Tommy Bengtsson & Cameron Campbell & James Z. Lee, 2004. "Life Under Pressure: Mortality and Living Standards in Europe and Asia, 1700-1900," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262025515, March.
When requesting a correction, please mention this item's handle: RePEc:ecl:yaleco:112. 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: ()
If references are entirely missing, you can add them using this form.