1.

Record Nr.

UNINA9910461963503321

Autore

Cole Shawn

Titolo

Barriers to household risk management [[electronic resource] ] : evidence from India / / Shawn Cole ... [et al.]

Pubbl/distr/stampa

Washington, D.C., : International Monetary Fund, c2012

ISBN

1-4755-6547-X

1-4755-1234-1

Descrizione fisica

1 online resource (44 p.)

Collana

IMF working paper ; ; WP/12/195

Soggetti

Financial risk - India

Risk management - India

Electronic books.

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

Cover; Abstract; Contents; I. Introduction; II. Insurance Contract Design and Summary Statistics; A. Product Description; B. Summary Statistics; III. Experimental Design; IV. Experimental Results; A. Andhra Pradesh; B. Gujarat: Video Experiments; C. Gujarat: Flyer Experiments; V. Discussion of Experimental Results; A. Price Relative to Actuarial Value; B. Trust; C. Liquidity Constraints; D. Financial Literacy and Education; E. Framing, Salience and Other Behavioral Factors; VI. Non-Experimental Evidence; A. Correlates of Insurance Purchase; B. Self-Reported Explanations for Non-Purchase

VII. Improving Household Risk Management: Tentative Lessons and ConclusionsReferences; VIII. Appendix

Sommario/riassunto

Why do many households remain exposed to large exogenous sources of non-systematic income risk? We use a series of randomized field experiments in rural India to test the importance of price and non-price factors in the adoption of an innovative rainfall insurance product. Demand is significantly price sensitive, but widespread take-up would not be achieved even if the product offered a payout ratio comparable to U.S. insurance contracts. We present evidence suggesting that lack of trust, liquidity constraints and limited salience are significant non-price frictions that constrain demand. We s