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Compound-Risk Aversion, Ambiguity, and the Willingness to Pay for Microinsurance

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  • Ghada Elabed
  • Michael R. Carter

Abstract

Index insurance—in which payments are based on an index correlated with, but not identical to, individual losses—has been faced with an unexpectedly low uptake, despite its promise as a tool for poverty alleviation.

Suggested Citation

  • Ghada Elabed & Michael R. Carter, 2015. "Compound-Risk Aversion, Ambiguity, and the Willingness to Pay for Microinsurance," Mathematica Policy Research Reports 0b775319df3d4ac0b981cc83e, Mathematica Policy Research.
    • Handle: RePEc:mpr:mprres:0b775319df3d4ac0b981cc83ed8b3f3b
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    More about this item

    Keywords

    Index insurance; ; Risk and uncertainty ; Compound risk ; Ambiguity ; Field experiments;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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