Barriers to household risk management: Evidence from india

American Economic Journal: Applied Economics

Volumn 5, Issue 1, 2013, Pages 104-135

  Cole, Shawn ^a   Giné, Xavier ^b   Tobacman, Jeremy ^c   Topalova, Petia ^d   Townsend, Robert ^e   Vickery, James ^f  

^a HARVARD BUSINESS SCHOOL   (United States)

^b WORLD BANK   (United States)

^c UNIVERSITY OF PENNSYLVANIA   (United States)

^d INTERNATIONAL MONETARY FUND   (United States)

^e MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

^f FEDERAL RESERVE BANK OF NEW YORK   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84873488807     PISSN: 19457782     EISSN: 19457790     Source Type: Journal    
DOI: 10.1257/app.5.1.104     Document Type: Article

References (49)

1. Allen, Franklin, and Douglas Gale. 1994. Financial Innovation and Risk Sharing. Cambridge, MA: MIT Press.
2. Athanasoulis, Stefano G., and Robert J. Shiller. 2000. "The Significance of the Market Portfolio." Review of Financial Studies 13 (2): 301-29.
3. Athanasoulis, Stefano G., and Robert J. Shiller. 2001. "World Income Components: Measuring and Exploiting Risk-Sharing Opportunities." American Economic Review 91 (4): 1031-54.
4. Babbel, David F. 1985. "The Price Elasticity of Demand for Whole Life Insurance." Journal of Finance 40 (1): 225-39.
5. Babcock, Bruce. 2011. "The Politics and Economics of the U.S. Crop Insurance Program." In The Intended and Unintended Effects of US Agricultural and Biotechnology Policies, edited by Joshua Graff Zivin and Jeffrey M. Perloff, 83-112. Cambridge, MA: National Bureau of Economic Research.
6. Bertrand, Marianne, Dean Karlan, Sendhil Mullainathan, Eldar Shafir, and Jonathan Zinman. 2010. "What's Advertising Content Worth? Evidence from a Consumer Credit Marketing Field Experiment." Quarterly Journal of Economics 125 (1): 263-305.
7. Binswanger, Hans P. 1980. "Attitudes toward Risk: Experimental Measurement in Rural India." American Journal of Agricultural Economics 62 (3): 395-407.
8. Bryan, Gharad. 2010. "Ambiguity and Insurance." http://www.econ.yale.edu/~gtb3/Gharad_Bryan/Research_files/GharadBryanJMP2.pdf.
9. Cai, Hongbin, Yuyu Chen, Hanming Fang, and Li-An Zhou. 2010. "The Effect of Microinsurance on Economic Activities: Evidence from a Randomized Natural Field Experiment." http://economics.sas.upenn.edu/~hfang/workingpaper/sow/restat-revise-3.pdf. (accessed October 2012).
10. Campbell, John Y. 2006. "Household Finance." Journal of Finance 61 (4): 1553-1604.
11. Campbell, John Y., and Joao F. Cocco. 2003. "Household Risk Management and Optimal Mortgage Choice." Quarterly Journal of Economics 118 (4): 1449-94.
12. Cawley, John, and Tomas Philipson. 1999. "An Empirical Examination of Information Barriers to Trade in Insurance." American Economic Review 89 (4): 827-46.
13. Chiappori, Pierre-André, and Bernard Salanié. 2000. "Testing for Asymmetric Information in Insurance Markets." Journal of Political Economy 108 (1): 56-78.
14. Clarke, Daniel. 2011. "A Theory of Rational Demand for Index Insurance." University of Oxford Department of Economics Discussion Paper 572.
15. Cole, Shawn. 2007. "BASIX Teaching Note 5-208-017." Unpublished.
16. Cole, Shawn, Thomas Sampson, and Bilal Zia. 2011. "Prices or Knowledge? What Drives Demand for Financial Services in Emerging Markets?" Journal of Finance 66 (6): 1933-67.
17. Cull, Robert, Asli Demirgüç-Kunt, and Jonathan Morduch. 2009. "Microfinance Meets the Market." Journal of Economic Perspectives 23 (1): 167-92.
18. Doherty, Neil A., and Harris Schlesinger. 1990. "Rational Insurance Purchasing: Consideration of Contract Nonperformance." Quarterly Journal of Economics 105 (1): 243-53.
19. Duflo, Esther, Michael Kremer, and Jonathan Robinson. 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya." American Economic Review 101 (6): 2350-90.
20. Fuster, Andreas, and Paul S. Willen. 2011. "Insuring Consumption Using Income-Linked Assets." Review of Finance 15 (4): 835-73.
21. Gaurav, Sarthak, Shawn Cole, and Jeremy Tobacman. 2011. "Marketing Complex Financial Products in Emerging Markets: Evidence from Rainfall Insurance in India." Journal of Marketing Research 48 (1): 150-62.
22. Giné, Xavier, Lev Menand, Robert Townsend, and James Vickery. 2012. "Microinsurance: A Case Study of the Indian Rainfall Index Insurance Market." In Handbook of the Indian Economy, edited by Chetan Ghate, 167-94. New York: Oxford University Press.
23. Giné, Xavier, Robert Townsend, and James Vickery. 2008. "Patterns of Rainfall Insurance Participation in Rural India." World Bank Economic Review 22 (3): 539-66.
24. Giné, Xavier, and Dean Yang. 2009. "Insurance, Credit and Technology Adoption: Field Experimental Evidence from Malawi." Journal of Development Economics 89 (1): 1-11.
25. Goodwin, Barry K. 1993. "An Empirical Analysis of the Demand for Multiple Peril Crop Insurance." American Journal of Agricultural Economics 75 (2): 425-34.
26. Guiso, Luigi, Paola Sapienza, and Luigi Zingales. 2008. "Trusting the Stock Market." Journal of Finance 63 (6): 2557-2600.
27. Hazell, Peter, Jamie Anderson, Niels Balzer, Andreas Hastrup Clemmensen, Ulrich Hess and Francesco Rispoli. 2010. Potential for Scale and Sustainability in Weather Index Insurance for Agriculture and Rural Livelihoods. International Fund for Agricultural Development and World Food Programme. Rome, March.
28. Jayachandran, Seema. 2006. "Selling Labor Low: Wage Responses to Productivity Shocks in Developing Countries." Journal of Political Economy 114 (3): 538-75.
29. Johnson, Eric, John Hershey, Jaqueline Meszaros, and Howard Kunreuther. 1993. "Framing, Probability Distortions, and Insurance Decisions." Journal of Risk and Uncertainty 7 (1): 35-51.
30. Karlan, Dean, Markus Mobius, Tanya Rosenblat, and Adam Szeidl. 2009. "Trust and Social Collateral." Quarterly Journal of Economics 124 (3): 1307-61.
31. Karlan, Dean S., and Jonathan Zinman. 2008. "Credit Elasticities in Less-Developed Economies: Implications for Microfinance." American Economic Review 98 (3): 1040-68.
32. Lusardi, Annamaria, and Olivia S. Mitchell. 2006. "Financial Literacy and Planning: Implications for Retirement Well-Being." Pension Research Council Working Paper 1.
33. Lusardi, Annamaria, and Olivia Mitchell. 2007. "Baby Boomer Retirement Security: The Roles of Planning, Financial Literacy, and Housing Wealth." Journal of Monetary Economics 54 (1): 205- 24.
34. Maccini, Sharon, and Dean Yang. 2009. "Under the Weather: Health, Schooling, and Economic Consequences of Early-Life Rainfall." American Economic Review 99 (3): 1006-26.
35. Mittal, Vikas, and William Ross. 1998. "The Impact of Positive and Negative Framing on Issue Interpretation and Risk Taking." Organizational Behavior and Human Decision Processes 76 (3): 298-324.
36. Morduch, Jonathan. 1995. "Income Smoothing and Consumption Smoothing." Journal of Economic Perspectives 9 (3): 103-14.
37. Pauly, Mark V., Kate H. Withers, Krupa S. Viswanathan, Jean Lemaire, John C. Hershey, Katrina Armstrong, and David A. Asch. 2003. "Price Elasticity of Demand for Term Life Insurance and Adverse Selection." National Bureau of Economic Research (NBER) Working Paper 9925.
38. Paxson, Christina. 1992. "Using Weather Variability to Estimate the Response of Savings to Transitory Income in Thailand." American Economic Review 82 (1): 15-33.
39. Rampini, Adriano, and S. Viswanathan. 2010. "Collateral, Risk Management, and the Distribution of Debt Capacity." Journal of Finance 65 (6): 2293-2322.
40. Reis, Ricardo. 2006. "Inattentive Consumers." Journal of Monetary Economics 53 (8): 1761-1800.
41. Rose, Elaina. 1999. "Consumption Smoothing and Excess Female Mortality in Rural India." Review of Economics and Statistics 81 (1): 41-49.
42. Rosenzweig, Mark R., and Hans P. Binswanger. 1993. "Wealth, Weather Risk and the Profitability of Agricultural Investment." Economic Journal 103 (416): 56-78.
43. Rothschild, Michael, and Joseph Stiglitz. 1976. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information." Quarterly Journal of Economics 90 (4): 630- 49.
44. Shiller, Robert. 1998. Macro Markets: Creating Institutions for Managing Society's Largest Economic Risks. New York: Oxford University Press.
45. Shiller, Robert. 2008. "Derivatives Markets for Home Prices." National Bureau of Economic Research (NBER) Working Paper 13962.
46. Townsend, Robert. 1994. "Risk and Insurance in Village India." Econometrica 62 (3): 539-91.
47. Tversky, Amos, and Daniel Kahneman. 1981. "The Framing of Decisions and the Psychology of Choice." Science 211 (4481): 453-58.
48. Yang, Dean, and HwaJung Choi. 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines." World Bank Economic Review 21 (2): 219-48.
49. Zwane, Alix Peterson, Jonathan Zinman, Eric Van Dusene, William Pariente, Clair Nul, Edward Miguel, Michael Kremer, et al. 2010. "Being Surveyed Can Change Later Behavior and Related Parameter Estimates." Proceedings of the National Academy of Sciences 108 (5): 1821-26.