TY  - JA
AU  - Belissa,T.
AU  - Lensink,R.
AU  - Asseldonk,M.van
TI  - Risk and ambiguity aversion behavior in index-based insurance uptake decisions: experimental evidence from Ethiopia
SN  - 0167-2681
PY  - 2020///
CY  - Netherlands
PB  - Elsevier
KW  - Insurance
KW  - AGROVOC
KW  - Risk
KW  - Ethiopia
N1  - Peer review
N2  - Index-based insurance (IBI) is an innovative pro-poor climate risk management strategy that suffers from low uptake. Evidence on the role of behavioral impediments in adoption of IBI is scant. We conducted lab-in-the-field experiments with 1139 smallholders out of whom 596 have adopted IBI in Ethiopia to elicit their risk and ambiguity aversion behavior, and examine whether risk and/or ambiguity aversion can explain actual IBI uptake decisions. Our study suggests that an increase in risk-aversion increases uptake, but an increase in ambiguity-aversion lowers uptake of IBI. We also find evidence that an increase in risk aversion speeds-up the uptake of IBI, while an increase in ambiguity aversion delays the adoption of IBI
T2  - Journal of Economic Behavior and Organization
DO  - https://doi.org/10.1016/j.jebo.2019.07.018
ER  -