Barriers to household risk management
Barriers to household risk management [electronic resource] /
Shawn Cole...[et al.].
- Washington : International Monetary Fund, 2012.
- 1 online resource (44 pages).
- IMF working papers ; WP/12/195 .
- IMF working paper (Online) ; WP/12/195. .
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.
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.
9781475512342 1475512341 1475593686 9781475593686
00013468
Financial risk--India.
Risk management--India.
Financial risk.
Risk management.
BUSINESS & ECONOMICS / Industrial Management
BUSINESS & ECONOMICS / Management
BUSINESS & ECONOMICS / Management Science
BUSINESS & ECONOMICS / Organizational Behavior
India.
Electronic books.
HD61
658.15/5
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.
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.
9781475512342 1475512341 1475593686 9781475593686
00013468
Financial risk--India.
Risk management--India.
Financial risk.
Risk management.
BUSINESS & ECONOMICS / Industrial Management
BUSINESS & ECONOMICS / Management
BUSINESS & ECONOMICS / Management Science
BUSINESS & ECONOMICS / Organizational Behavior
India.
Electronic books.
HD61
658.15/5