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Borrowing from the insurer: An empirical analysis of demand and impact of insurance in China:

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  • Liu, Yanyan
  • Chen, Kevin Z.
  • Hill, Ruth Vargas
  • Xiao, Chengwei

Abstract

Farmers in developing countries face relatively large income risk and have limited access to formal financial products that can help them manage their risk. We present results from a randomized controlled trial in rural China designed to understand whether a small change in the timing of a premium payment for a swine insurance contract helps to overcome an important barrier to insurance demand and, if so, whether the resulting increase in insurance would allow farmers to increase investment in activities that expose them to the risk being insured against. We find that insurance take-up is three times higher among those who were given the option to pay at the end of the insured period.

Suggested Citation

  • Liu, Yanyan & Chen, Kevin Z. & Hill, Ruth Vargas & Xiao, Chengwei, 2013. "Borrowing from the insurer: An empirical analysis of demand and impact of insurance in China:," IFPRI discussion papers 1306, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1306
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    References listed on IDEAS

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    Cited by:

    1. Renuka Sane & Susan Thomas, 2016. "From participation to repurchase: Low income households and micro-insurance," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2016-019, Indira Gandhi Institute of Development Research, Mumbai, India.
    2. K.S. , A. & Khan, T. & Kishore, A., 2018. "Willingness to pay for Weather Based Crop Insurance in Punjab," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277516, International Association of Agricultural Economists.

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    Keywords

    Agricultural insurance; Liquidity;

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