000 00595nab|a22002177a|4500
999 _c62454
_d62446
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003 MX-TxCIM
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008 200818s2014||||xxk|||p|op||||00||0|eng|d
022 _a0033-5533
022 _a1531-4650 (Online)
024 8 _ahttps://doi.org/10.1093/qje/qju002
040 _aMX-TxCIM
041 _aeng
100 1 _aKarlan, D.
_914374
245 1 0 _aAgricultural decisions after relaxing credit and risk constraints
260 _aUnited Kingdom :
_bOxford University Press,
_c2014.
500 _aPeer review
520 _aThe investment decisions of small-scale farmers in developing countries are conditioned by their financial environment. Binding credit market constraints and incomplete insurance can limit investment in activities with high expected profits. We conducted several experiments in northern Ghana in which farmers were randomly assigned to receive cash grants, grants of or opportunities to purchase rainfall index insurance, or a combination of the two. Demand for index insurance is strong, and insurance leads to significantly larger agricultural investment and riskier production choices in agriculture. The binding constraint to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face, farmers are able to find resources to increase expenditure on their farms. Demand for insurance in subsequent years is strongly increasing with the farmer’s own receipt of insurance payouts, with the receipt of payouts by others in the farmer’s social network and with recent poor rain in the village. Both investment patterns and the demand for index insurance are consistent with the presence of important basis risk associated with the index insurance, imperfect trust that promised payouts will be delivered and overweighting recent events.
546 _aText in English
650 7 _aInvestment
_2AGROVOC
_95289
650 7 _aSmall scale farming
_2AGROVOC
_910234
650 7 _aFinancial situation
_2AGROVOC
_94420
650 7 _aConstraints
_2AGROVOC
_96423
700 1 _915347
_aOsei, R.
700 1 _915348
_aOsei-Akoto, I.
700 1 _914375
_aUdry, C.
773 0 _gv. 129, no. 2, p. 597-652
_dUnited Kingom : Oxford University Press, 2014.
_x0033-5533
_tQuarterly Journal of Economics
942 _cJA
_n0
_2ddc