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Delayed Premium Payment, Insurance Adoption, and Household Investment in Rural China

Yanyan Liu (), Kevin Chen and Ruth Hill

American Journal of Agricultural Economics, 2020, vol. 102, issue 4, 1177-1197

Abstract: We conduct a randomized controlled trial to examine the impacts of delayed premium payment on insurance uptake and the subsequent investment decisions among smallholder farmers in rural China. Our results show uptake among those with the delayed payment option is 10% higher than and three times as high as among those without the option. We also find a positive impact of delayed premium payment and insurance adoption on household investment in production, especially higher risk activities.

Date: 2020
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Handle: RePEc:wly:ajagec:v:102:y:2020:i:4:p:1177-1197