Using choice experiments, we estimate the willingness to pay for price insurance among cotton and paddy farmers in the Indian state of Gujarat. We also identify the interactions between the demand for price insurance and the existing informal and formal insurance mechanisms. Our results indicate that cotton farmers value price insurance more than paddy farmers. Also, most of the existing informal risk management strategies of farmers seem to have a positive effect on the demand for price insurance, suggesting potential complementarities. Important policy implications on the design and bundling of innovative financial products follow from our findings

Thiagu Ranganathan, Sarthak Gaurav and Ashish Singh ()
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Ashish Singh: Institute of Economic Growth, Delhi

No 340, IEG Working Papers from Institute of Economic Growth

Keywords: Willingness to pay; price insurance; choice experiments; India (search for similar items in EconPapers)
JEL-codes: D01 D81 G13 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2014
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Published as Institute of Economic Growth, Delhi, 2014, pages 1-34

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Persistent link: https://EconPapers.repec.org/RePEc:awe:wpaper:340

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