Journal
JOURNAL OF AGRICULTURAL ECONOMICS
Volume 69, Issue 1, Pages 96-120Publisher
WILEY
DOI: 10.1111/1477-9552.12226
Keywords
Insurance; Mexico; risk aversion; technology adoption
Categories
Funding
- Deutsche Forschungsgemeinschaft (DFG)
- International Maize and Wheat Improvement Center (CIMMYT)
Ask authors/readers for more resources
For farmers in developing countries, the combination of both risk aversion and the lack of insurance is often a major impediment to adoption of productivity-enhancing technologies, such as higher yielding hybrid seed. In a framed field experiment with Mexican maize farmers, we investigate whether bundling hybrid seed with an insurance scheme can increase its adoption, while also controlling for risk aversion. We test insurance schemes with different levels of risk coverage and premium subsidies and find that (1) all schemes significantly increase the degree of adoption of the higher yielding seed, (2) partial insurance schemes perform worse than full insurance, (3) weather index insurance with geographical basis risk performs no worse than indemnity insurance, and (4) premium subsidies significantly increase the adoption effect of indemnity insurance, but not that of index insurance.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available