%0 Generic
%T Barriers to household risk management Evidence from India
%A Cole, Shawn
%A Vickery, James
%A Tobacman, Jeremy
%A Topalova, Petia
%A Townsend, Robert
%A Cole, Shawn
%A Giné, Xavier
%I The World Bank
%D 2010
%X Why do many households remain exposed to large exogenous sources of non-systematic income risk? This paper uses 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. The analysis finds that demand is significantly price-elastic, but that even if insurance were offered with payout ratios similar to US, widespread coverage would not be achieved. The paper identifies key non-price frictions that limit demand: liquidity constraints, particularly among poor households, lack of trust, and limited salience. The authors suggest potential improvements in contract design to mitigate these frictions
%C The World Bank
%C Washington, D.C
%U http://slubdd.de/katalog?TN_libero_mab2
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