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Temperature and Rainfall Index Insurance in India

Author

Listed:
  • Ayako Matsuda

    (Research Fellow, Japan Society for the Promotion of Science, Osaka School of International Public Policy (OSIPP))

  • Takashi Kurosaki

    (Professor, Institute of Economic Research, Hitotsubashi University)

Abstract

Weather index insurance has been attracting much attention from academics and policy makers. This paper investigates the demand for temperature and rainfall index insurance in India using the data from randomized subsidy experiments. We find that price, income and asset levels influence the demand for both temperature and rainfall insurance. We also show that richer farmers are less price-sensitive and farmers' response to the discount becomes less price-sensitive as the amount of discount increases. Non-price factors such as age and education level of a respondent are important correlates. Purchase decisions are also influenced by individual prior experience and society experience of insurance.

Suggested Citation

  • Ayako Matsuda & Takashi Kurosaki, 2017. "Temperature and Rainfall Index Insurance in India," OSIPP Discussion Paper 17E002, Osaka School of International Public Policy, Osaka University.
  • Handle: RePEc:osp:wpaper:17e002
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    File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2017/DP2017E002.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Weather Insurance; Temperature Insurance; Demand for Insurance;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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